Daiwa Securities: Hormuz closure combined with slowdown in tourism puts double pressure on Japan's exports

Golden Ten Data, May 19 — Kento Minami, an economist at Daiwa Securities, stated that although Japan's GDP data released on Tuesday showed robust export growth from January to March, exports are expected to face downward pressure in the future. He pointed out: "Due to the closure of the Strait of Hormuz, exports to the Middle East will continue to face direct downward pressure, and production cuts caused by domestic supply constraints are expected to drag down overall goods exports." He added that inbound tourism (a component of exports in GDP data) has already slowed due to a decrease in visitors and could weaken further due to rising fuel surcharges.