Japan just posted its strongest export growth in over two and a half years. May exports climbed 17% year over year, topping analyst expectations and extending a remarkable nine-month winning streak for the world’s fourth-largest economy.
The number beat market forecasts of roughly 16.2% and accelerated from April’s revised 14.8% growth. Two sectors did most of the heavy lifting: semiconductors and automobiles, both of which happen to sit at the center of every major geopolitical and economic conversation happening right now.
The numbers behind the surge
Semiconductor-related exports were the standout, surging 41.6% year over year. The global appetite for chips, driven in large part by the AI infrastructure buildout, continues to funnel enormous demand toward Japanese suppliers of electrical machinery and advanced components.
Geographically, the growth was broad-based but uneven. Shipments to China rose 17.9%, exports to the United States grew 12.5%, and ASEAN nations also showed solid performance. The one sore spot: the Middle East, where shipments dropped sharply amid regional tensions and supply disruptions.
