TOKYO: An unsung hero of Japan’s economy may be exports after all. There has been consternation that the depreciation of the yen since the Bank of Japan started easing in April 2013 hasn’t translated into a major export boost, as many expected. Yet as can be seen in Japan’s first-quarter gross domestic product numbers, out Wednesday, exports are at least holding their own—contributing 1.8 percentage points to the 2.4% seasonally adjusted annualized growth rate.
That easily exceeds the 10-year average of 0.56 percentage point. The rub is that imports have counteracted trade’s effect on the GDP calculation, because Japan has had to increase its energy imports to replace the power contributed by its shuttered nuclear plants. With underlying export strength, it’s no coincidence that Japan’s stock market, dominated by exporters, is near a 15-year high.
