Japan's exports grow better than expected

TOKYO

Japan reported yesterday that its exports increased by 1.6 percent in October from a year earlier, as auto and ship shipments rose.

Government data showed exports to the rest of Asia fell, while exports to the U.S. and Europe surged.

Japanese imports fell 12.5 percent to 9.8 trillion yen ($64 billion), mainly due to lower costs for oil, gas and coal.

Shipments of computer parts and cereal also were lower, while steel imports surged.

With exports at 9.15 trillion yen ($60.5 billion) The trade deficit for October shrank by 70 percent a year earlier to 662.5 billion yen ($4.4 billion).

October marked the second straight month of export growth, but the climb slowed from 4.3 percent in September. That could be bad news for the world’s third largest economy, which heavily depends on export manufacturing to drive growth.

“Exports helped drive stronger growth in the first half of this year, but now that the export recovery has run its course, the prospects for a fresh boost to growth appear remote,” Stefan Angrick, economist at Moody’s Analytics, said in a report.

Japan’s economy contracted at a 2.1 percent annual pace in July-September as consumption and investment weakened.