Japan Export Growth at 3-1/2-Year High

Japan’s exports surged 17.0% year-on-year in May 2026, accelerating from 14.8% in the previous month while marking the strongest growth since November 2022 and exceeding market estimates of 16.2%. It was also the ninth straight month of increase, supported by resilient global demand for semiconductors and automobiles despite Middle East tensions disrupting supply chains and lifting energy costs. Shipments grew to China (17.9%), the U.S. (12.5%), ASEAN (20.0%), the EU (14.5%), and Vietnam (33.0)%, but shrank to the Middle East (-33.2%). Sales rose for all components: transport equipment (12.9%), notably motor vehicles and car; electrical machinery (32.4%), boosted by chips and IC; others (16.8%), driven by scientific, optical instrument; machinery (6.7%), led by semicon machinery; manufactured goods (16.8%), due to non-ferrous metals; and chemicals (11.1%), notably plastics.
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