Japan's Export Outlook Faces Downward Pressure, Economist Says

Economist Kento Minami from Daiwa Securities has expressed concerns about Japan's export outlook despite the robust growth reported in the GDP data for January to March. According to Jin10, Minami highlighted that the closure of the Strait of Hormuz is expected to exert direct downward pressure on exports to the Middle East. Additionally, domestic supply constraints leading to production cuts are anticipated to further impact overall goods exports. He also noted that inbound tourism, a component of exports in GDP data, has slowed due to a decrease in visitors and may weaken further due to rising fuel surcharges.