Japan¡¯s exports jumped by the most since 2010 in July, aiding Prime Minister Shinzo Abe¡¯s efforts to drive an economic recovery even as rising energy costs boosted the trade deficit.
Exports increased 12.2 percent from a year earlier after a 7.4 percent rise in June, the Finance Ministry said Monday. Imports climbed 19.6 percent, leaving a trade deficit of ?1.02 trillion ($10.5 billion), the third-biggest on record in data dating back to 1979. The seasonally adjusted deficit widened from June to ?944 billion.
The stronger exports show Japan¡¯s economy is starting to benefit from a recovery in demand in the U.S. and Europe, and the yen¡¯s 11 percent decline against the dollar this year. The health of the economy will be the key to Abe¡¯s decision next month on whether to raise the 5 percent sales tax to 8 percent in April.
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