News Details
Japan logs 1.22 trillion yen trade deficit, exports hit record in May
Japan
Chemicals Products
21-06-2024
Japan posted a 1.22 trillion yen ($7.7 billion) trade deficit in May, after a weak yen inflated the value of imports, offsetting a continued increase in exports that hit a record high for the month, government data showed Wednesday. Imports rose 9.5 percent from a year earlier to 9.50 trillion yen, boosted by petroleum products and crude oil among other items. Robust auto shipments to the United States and strong demand in China for chip-making machinery helped lift Japan's overall exports by 13.5 percent to 8.28 trillion yen, the largest-ever for May. Japan was in the red for the second straight month, with the deficit down 11.6 percent from a year earlier, according to a preliminary report by the Finance Ministry. The shrinkage came as the country's exports, which tend to slow in May due to the Golden Week holidays, rose for the sixth straight month. The yen was about 15 percent lower against the U.S. dollar compared with the same period last year, dealing a blow to resource-scarce Japan by boosting the value of imports.
Strong auto demand in the United States, a key trading partner for Japan, was a positive for Japan's export-driven economy, though the domestic auto sector has been hit by safety test scandals, which led shipments of some models to be halted. Japan had a trade surplus of 473.64 billion yen with the United States, up 10.9 percent, according to the ministry. Exports jumped 23.9 percent to 1.70 trillion yen, a record-high for May. Imports also surged, up 29.7 percent to 1.23 trillion yen, lifted by aircraft engines and liquefied natural gas. Japan had a 533.09 billion yen deficit with China, another major trading partner. The figure shrank 1.5 percent, but left Japan in the red for the 38th straight month. Exports to China increased 17.8 percent to 1.58 trillion yen, while imports rose 12.3 percent to 2.11 trillion yen. Both exports and imports marked highs for May. Japan eked out a surplus of 26.98 billion yen with Asia, which includes China, remaining in the black for the fourth straight month. Japan's trade deficit came to 271.63 billion yen with the European Union, up 91.6 percent. The fourth consecutive month of red ink came as imports grew 5.3 percent while exports fell 10.1 percent.