New figures show sustained trade growth for Japan

Industry News | | MIC Customs Solutions |

Japan's trade situation is looking positive for the last part of 2018, new figures suggest.

New data has shown that trade growth is being sustained in Japan, driven largely by the automotive industry.

DHL's Global Trade Barometer for the nation is calculated using Big Data and artificial intelligence and is widely seen as an early indicator of global trade trends.

It found that air exports of cars and their parts contributed significantly to an expected growth of 64 points for quarter four of 2018, something that is sure to be welcomed by businesses in the Asian country.

DHL spokesperson for Japan Charles Kaufmann said this modest yet consistent growth shows no sign of wavering in the foreseeable future, with the automotive industry continuing to excel on the global market.

"The country's economic maturity puts it in a solid position to meet the evolving needs of increasingly affluent Asian consumers in the sub-region, while also catering to global demand for value-added products like high technology, machinery and parts," he added.

DHL also released information about China, where trade is expected to remain positive despite a slowdown in air and ocean trade and repercussions from ongoing trade disputes.

Meanwhile, in South Korea, the forecast was also largely positive for growth, even though the index slipped five percentage points.

The DHL Global Trade Barometer provides a quarterly outlook on future trade and uses export and import data from China, South Korea, Germany, India, Japan, the United Kingdom, and the United States.

Its comprehensive reach means the reports are regularly used to make near-term predictions on global trade patterns.

Earlier this week, the International Monetary Fund forecast that the Japanese economy will grow 1.1 per cent this year, up from an estimate of one per cent made in July.

However, the organization cut global economic growth forecasts for 2018 and 2019 as a result of trade policy tensions and import tariffs, as well as tighter financial conditions in emerging markets.