TOKYO: The continued growth in exports suggest the global recovery remains firm, and sales to China should bounce back after the decline caused by the holidays. Yet a stronger yen poses some risks to the Japanese economy by making exports less competitive and weighing on inflation by reducing the price of imports. The chances of a trade war breaking out due to U.S.
President Donald Trump’s tariffs is another potential source of downside for Japan.Japan has been in an export-led recovery and I think that will continue this year,” said Masaki Kuwahara, a senior economist at Nomura Securities Co. in Tokyo. “Year-on-year exports slowed quite a bit due to the lunar new year. February is a month when it’s easy for them to drop off.
