Arab News Japan

TOKYO: Japan’s nominal goods exports grew around 12 percent in March, following similar trends in January and February, but analyst Oxford Economics believes this momentum will drop off later in the year.

Negative impacts from energy price spikes on the global economy will likely hit demand for Japanese goods toward the end of 2026, OE’s latest report says.

AI demand is expected to stay strong, although its incremental boost to Japan’s exports to Asia (excluding China) may become less pronounced over time. 

Japan’s nominal goods exports gained 11.7 percent year-on-year in March, following a 9.9 percent average gain in the first two months of the year.

By region, exports to the US rose 3 percent after falling 8percent in February, marking the first gain since November 2025, led by capital goods shipments. 

Exports to the EU remained robust, rising 18 percent (14 percent in February), partially inflated by yen weakness against the euro. 

Exports to Asia also gained (16 percent after a 13 percent average in January-February). Chip exports to the region posted double-digit gains for a seventh consecutive month, with persistent demand for IT-related products.

While nominal imports rose, import prices of crude oil and LNG stayed low, as most imports in March were priced before the escalation of the Iran conflict.

Sluggish global growth is likely to limit global demand for Japanese goods later in the year.