Japan recorded its first trade surplus in three months in June amid a recovery in exports, which was supported by the yen’s weakness against the U.S. dollar. Japan’s trade surplus in June grew five-fold compared to June 2023, recording 224 billion yen or $1.4 billion, on rising exports of vehicles and computer chips.
In June, imports rose 3 percent to 8.98 trillion yen ($58 billion), while exports rose 5 percent to 9.2 trillion yen ($59 billion), cooling from 13.5 percent growth in May.
Trade deficit declines by over 50 percent
During the first six months of 2024, Japan’s trade deficit declined by more than half from the same period last year to 3.23 trillion yen ($21 billion), according to the latest data from the Ministry of Finance. From January to June, imports rose 0.8 percent to 54.7 trillion yen ($350 billion), while exports rose close to 9 percent to 51.5 trillion yen ($330 billion).
Japan has reported trade deficits for six fiscal half-years in a row starting with the second half of 2021, particularly due to the weak yen and rising global prices.
Japan’s value of exports to China increased by 7.2 percent year-on-year in June due to rising demand for chip-making equipment. However, growth slowed from the 17.8 percent increase in May. Exports to the United States grew 11 percent year-on-year in June, while those to the European Union declined by 13.4 percent.
Read: Japan’s exports reach $53 billion in May amid weak yen, robust global demand
Japan’s outlook
Earlier, the International Monetary Fund (IMF) revised its economic growth forecast for Japan in 2024. The IMF cut its projection for Japan’s economic growth this year, citing temporary disruptions in automobile production and weaker private investment in the first quarter.
The IMF now expects Japan’s economy to expand by 0.7 percent in 2024, a 0.2 percentage point decrease from its April forecast. The fund maintained its projection for the Japanese economy to grow 1.0 percent in 2025, following an increase of 1.9 percent in 2023.
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