Japan’s export growth accelerated for a fifth straight month in July, climbing 23.2% year on year — the fastest pace since October 2022 and ahead of the 19.9% gain economists had predicted in a Reuters poll.
The surge was powered by semiconductor equipment shipments, which jumped 49.1% in value terms, underscoring sustained demand tied to the artificial intelligence boom.
By destination, exports to China — Japan’s largest trading partner — rose 25.8%, while shipments to the U.S. increased 22%.
Despite the strong headline numbers, much of the gain was attributed to a weak yen and higher selling prices. Actual export volumes rose only 5.2% in July, according to the data.
Market reaction
The Nikkei 225 rose 0.64% following the release, while the yen slipped 0.11% against the dollar to trade at 158.35.
Imports jump on oil costs
Imports climbed 27.8% in July, the highest level since November 2022, beating analysts’ estimates of a 26.5% gain. A significant factor was an 87.8% surge in petroleum imports by value, driven by higher oil prices amid the Iran war. Japan relies on imports for over 87% of its energy needs, according to the International Energy Agency.
GDP support
Strong exports have been a key support for Japan’s economy. Year on year, GDP grew 0.7% in the second quarter, up from 0.5% in the first three months of the year. Although GDP missed expectations on a quarter-on-quarter and annualized basis, exports were the largest contributor to economic growth, helping cushion the shortfall.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/20/japan-exports-imports-july-chip-ai.html
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