Increasing Japan Exports in October due to High Export Demand

The exports from Japan are anticipated to increase for eleven consecutive months in October which would be supported by a strong demand from cars and electronic manufacturing machinery since they are the third biggest economy which is in the path to recovery according to the survey from Reuters on Friday.

The gross domestic product of the Asian country improved for seven uninterrupted months until the third quarter because of high exports demand such as cars and electronic parts within Asia and to the United States. Economists forecast that the economy will improve at a moderate pace as exports maintain the solid trend. Although, Japan is facing problems as they aspire to raise low consumer spending and inflation.

Exports are predicted to increase by 15.8 percent in October compared last year based on the survey of 20 economists because of overseas demand for cars and increase in semiconductor manufacturing tools.  

Imports increased 20.2 percent in October than last year. This has been the quickest pace since January 2014 with more expensive oil prices which also increased the imports costs according to the survey.

The trade balance would possibly be at 330.0 billion yen or $2.93 billion in October. A decline was seen from the 667.7 billion yen in September. Exports are forecasted to continuously increase since the external factors are kept unchanged in the fourth quarter as mentioned by the chief market economist at SMBC Nikko Securities.

The finance ministry will publish the trade data at 8:50 a.m. Tokyo time on Monday (23.50 GMT Sunday). The latest economic data saying that Japan could get free from deflation which they were faced with for years according to the analysis from the government which was submitted to the advisory panel on Thursday.

The government of Japan is anticipated to publicized their economic schemes by end of the year with a goal to have a higher investment in skills training and more productivity.