Japan’s exports record fastest growth in nine months, sharply beating expectations
Honda vehicles line up in a vehicle storage area at an industrial port in Yokohama, near Tokyo, Japan, on July 23, 2025, on the day U.S. President Donald Trump signed a trade deal with Japan that lowers tariffs on auto imports.
Kim Kyung-hoon | Reuters
Japan’s exports in November rose 6.1% year-on-year, the fastest increase in nine months of this year, according to data released Wednesday from the country’s finance ministry.
Growth sharply beat expectations for an average 4.8% increase forecast by economists polled by Reuters and was above the 3.6% seen the previous month.
Export figures were also supported by a 23.6% increase in goods shipped to Western Europe, as well as an 8.8% increase in exports to the United States, the second largest trading partner. This marks the first time exports from Japan to the United States have increased since March.
Auto exports fell 4.1% in value terms, but auto shipments to the US rebounded in November, up 1.5% year-on-year.
Data comes later revised GDP figures Data for the third quarter showed that Japan’s economy contracted more than initially estimated, shrinking by 0.6% on a quarterly basis and 2.3% on an annual basis.
Shipments to mainland China fell 2.4%, but exports to Hong Kong increased 11.4% compared to the same period in the previous year. Exports of “food products” to mainland China fell 5.9% in value.
In November, tensions between Japan and China rose after Japanese Prime Minister Sanae Takaichi said China’s attempt to seize Taiwan by force could trigger intervention by Japan’s military and lead Beijing to restrict imports of Japanese seafood.
Imports to Japan increased by 1.3% in November, compared to expectations for a 2.5% increase.
Trade and diplomatic frictions aside, Japanese companies are positive about business growth. Bank of Japan Tankan survey It shows sentiment among Japanese companies mostly improved in the fourth quarter, especially among smaller producers.
Jesper Koll, expert director of Tokyo-based financial services firm Monex Group, pointed out the growth in semiconductor and equipment exports and said that the US-led boom in technology spending has turned into the growth of special machinery and equipment exports.
Exports of electrical machinery increased by 7.4% on an annual basis, and semiconductor-related exports increased by 13%; Koll said this is “a testament to Japan’s competitiveness in the supply of machinery that produces machines.”
“The market is underestimating the positive effects of the increase in US capital spending; much of what is going into new data centers, AI hardware providers and power centers is Made in Japan and can only be made in Japan,” Koll said. he added.
