On June 16, Japan’s Ministry of Finance released May trade data showing a deficit of 378.6 billion yen (roughly $2.7 billion). This marks the third straight month of import surpluses, indicating the economy faces mounting challenges from energy and raw material markets.
According to the figures, Japanese exports in May rose slightly year-on-year but at a slower pace than forecast. Imports, however, surged sharply, driven mainly by rising costs of imported energy and food. The trade balance continues to be pressured by a weak yen, which increases the cost of essential imports.
Economists note that a prolonged trade deficit could weigh on GDP growth and pose challenges for the Bank of Japan’s (BOJ) monetary policy. The latest data comes amid volatile global financial markets, with investors closely watching BOJ signals on possible interest rate adjustments.
