Japan's exports surge to a 3-year high, up 17% in January, with a notable boost in shipments to China. This growth comes as a surprise, following a trade deficit in September. The surge in exports is attributed to a 26% increase in shipments to Asia and a 25% jump in Western Europe, partially offsetting a 3.3% decline in North America. Food, machinery, and electrical machinery, including chips, saw the sharpest growth. Transport equipment, a key growth driver, faced pressure due to U.S. tariffs. Despite a 2.5% year-on-year import decline, Japan's economy expanded by 0.1% in the fourth quarter, with net exports negatively impacting growth. The year's GDP growth of 1.1% was also weighed down by net exports. However, a recent trade deal with the U.S. has slashed duties, and Japan's investment pledge of $550 billion is set to boost the economy further.
