Vehicle exports continue to drive Japan’s economy as 2019 begins

December 03, 2018 - 02:49
Vehicle exports continue to drive Japan’s economy as 2019 begins

  • Exports of land vehicles and machinery make the largestcontributions to the country's growth in air trade
  • Imports of Industrial Raw Materials and Personal & HouseholdGoods remain ocean trade's main engines for growth

 

TOKYO,JAPAN  - MediaOutReach - December 3, 2018- Air exports of land vehicles and parts continue to be the maincontributor to sustained trade growth in Japan, according to data from the DHL Global Trade Barometer released by DHL,the world's leading logistics company. An early indicator of global tradedevelopments calculated using Artificial Intelligence and Big Data, the DHL Global Trade Barometer shows that Japan'stradegrowth is expected to remain restrained in the next three months with an indexof 58 points amidst slowing global trade momentum.



 

Sectors that have seen an increase from theprevious quarter include Basic Raw Materials, Chemicals & Products,Personal & Household Goods and Temperature or Climate Control. However,exports of land vehicles and machinery parts are still the biggest contributorsto positive air trade growth, despite a downward trend for both air and oceantrade in general.

 

"Automobile manufacturinghas been a key pillar of Japan's industrial sector for decades and continues tohold up a crucial share of the export economy," said Charles Kaufmann, President/RepresentativeDirector -- Japan K.K, and CEO, North Asia South Pacific, DHL Global Forwarding. "Employing five million people domestically and worth 50 trillion yen (US$442billion) in exports alone,[1]Japan's automotive industry continues to heighten its global competitiveness byinvesting in R&D to develop innovative technologies, especially in the areaof autonomous driving.[2]

 

"The Barometer's indicationsof strong Personal & Household Goods imports suggest that domesticsentiment has retained its recent optimism, with wage growth continuing to propup consumer confidence despite the ongoing spectre of global trade disputes.[3]This combination of relatively strong domestic demand and consistently hardy exportsectors, like automotive, should support at least cautious positivity forJapan's trade prospects in the near term."

 

The Barometer's resultsalso suggest that global trade will continue to grow over the next three monthsand that the development of the previous quarters will continue. The pace ofgrowth, however, will particularly decelerate for Asia except for China.

 

"The DHL Global Trade Barometer clearly showsthat the state of global trade remains solid. Both air and ocean trade continueto grow around the world. However, given the smoldering trade conflicts,especially between the United States and China, and economists' expectationsthat the global economy could cool down, it is not entirely surprising thattrade momentum has weakened slightly," said Tim Scharwath, CEO of DHL GlobalForwarding, Freight.

 

Indices for all seven countries that constitute the GTB index -- China, Germany, India, Japan, South Korea, theUnited Kingdom, and the United States -- are above 50 points. In the Global Trade Barometermethodology, an index value above 50 indicates positive growth, while valuesbelow 50 indicate contraction.

 

Launched in January 2018, the DHL Global Trade Barometer is aninnovative and unique early indicator for the current state and futuredevelopment of global trade. It is based on large amounts of logistics datathat are evaluated with the help of artificial intelligence. The indicator hasbeen developed in cooperation between DHL, the world's leading logisticscompany, and IT service provider Accenture. It is published four times a year.The next release date is scheduled for March 27, 2019.

 

DHL -- The logistics company for the world

 

DHL is the leading global brand in the logistics industry. Our DHL familyof divisions offer an unrivalled portfolio of logistics services ranging fromnational and international parcel delivery, e-commerce shipping and fulfillmentsolutions, international express, road, air and ocean transport to industrialsupply chain management. With about 360,000 employees in more than 220countries and territories worldwide, DHL connects people and businessessecurely and reliably, enabling global trade flows. With specialized solutionsfor growth markets and industries including technology, life sciences andhealthcare, energy, automotive and retail, a proven commitment to corporateresponsibility and an unrivalled presence in developing markets, DHL is decisivelypositioned as "The logistics company for the world".

 

DHL is part ofDeutsche Post DHL Group. The Group generated revenues of more than 60 billioneuros in 2017.


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