Key facts
- Japan's trade balance recorded a deficit in May, the first in four months.
- Exports increased 17% year-on-year to 9.51 trillion yen.
- Imports rose 12.5% year-on-year to 9.89 trillion yen.
- The resulting trade deficit was 378.6 billion yen.
- Imports of electrical machinery saw a significant jump of 31.5%.
Japan recorded a trade deficit in May, marking the first such deficit in four months. This occurred despite a significant 17% rise in exports to 9.51 trillion yen ($59.4 billion) year-on-year. However, imports surged 12.5% to 9.89 trillion yen ($61.8 billion), resulting in a deficit of 378.6 billion yen ($2.4 billion). The surge in imports was largely driven by electrical machinery, which jumped 31.5%, fueled by strong demand for computer chips and other components related to the artificial intelligence boom. While oil and gas imports fell 1.8% year-on-year, the value of vehicle exports rose more than 13% despite a decrease in volume. The weak yen, trading around 160 to the U.S. dollar compared to 140 a year ago, also contributed to the higher value of imports.