Japan’s exports jump 17% in May, but it logs a deficit as imports surge
Imports rose 12.5% and exports gained 17% as a weaker yen pushed Japan back to a 378.6 billion yen trade deficit, the ministry said.
- Japan recorded a trade deficit of 378.6 billion yen on Wednesday, the first in four months, as surging import costs offset the fastest export growth in years. Exports rose 17% to 9.51 trillion yen, while imports increased 12.5% to 9.89 trillion yen.
- A weak yen inflated import values, causing import volumes to fall nearly 7%, while robust demand for artificial intelligence components drove electrical machinery imports up 31.5%. The yen traded at 158.29 against the dollar, 10% weaker than a year ago.
- Outbound shipments of chips surged 61.2% amid an ongoing boom in demand for artificial intelligence products, with exports heading to China rising notably. Exports of autos climbed nearly 19% by value, despite Japan exporting fewer vehicles in absolute terms.
- On Tuesday, The Bank raised its benchmark interest rate to 1.0%, the highest level since 1995, signaling policymakers' intent to tame inflation. The move follows ongoing economic adjustments to tariffs imposed by President Donald Trump.
- Economists expect trade may weigh on growth in the second quarter due to the impact of the war in Iran. Japan relies on the Middle East for energy, and oil imports fell 1.8% year-on-year amid the blockade of the Strait of Hormuz.
16 Articles
16 Articles
Japan's exports rise on weak yen, AI boom, but price-led gains mask weak volumes
Japan's exports grew for a ninth straight month in May, data showed on Wednesday, as a weaker yen, higher commodity prices and solid semiconductor demand offset the drag from major supply disruptions linked to the U.S.-Israeli war with Iran.
Japan recorded in May a trade deficit of 378.6 billion yen (about EUR 2,032 million at the current exchange rate), today reported the Government. The negative balance emerges after three consecutive months of surplus, although it represents a reduction of 42.8% compared to the deficit recorded in the same month of the previous year, according to the monthly report published by the Ministry of Finance. Japanese exports grew 17% in homologous term…
Japanese shipments were driven by strong demand for electronic components, automobiles, and non-ferrous metals.
Coverage Details
Bias Distribution
- 42% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
