Japan Trade Surplus Below Forecasts

2026-01-22 00:04 By Farida Husna 1 min. read

Japan’s trade surplus narrowed to JPY 105.7 billion in December 2025 from JPY 120.3 billion in the same month a year earlier, missing market expectations for a JPY 357 billion gain, as imports grew a bit faster than exports.

Imports climbed 5.3% year-on-year to an 11-month high of JPY 10,305.8 billion, extending gains for a fourth consecutive month and easily beating forecasts of 3.6%, highlighting solid domestic demand, underpinned by Tokyo’s large-scale stimulus package, the biggest since the pandemic and the first introduced under the Takaichi administration.

Meanwhile, exports rose 5.1% to a record of JPY 10,411.5 billion, marking a fourth straight monthly increase, buoyed by strong year-end foreign demand and a weaker yen.

However, the gain fell short of the consensus of 6.1%, as Japanese automakers continued to face a 15% U.S.

tariff under the trade deal reached in September.

In 2025, Japan logged a trade gap of about JPY 2.65 trillion, down 52.9% from the prior year.



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Japan Trade Surplus Below Forecasts
Japan’s trade surplus narrowed to JPY 105.7 billion in December 2025 from JPY 120.3 billion in the same month a year earlier, missing market expectations for a JPY 357 billion gain, as imports grew a bit faster than exports. Imports climbed 5.3% year-on-year to an 11-month high of JPY 10,305.8 billion, extending gains for a fourth consecutive month and easily beating forecasts of 3.6%, highlighting solid domestic demand, underpinned by Tokyo’s large-scale stimulus package, the biggest since the pandemic and the first introduced under the Takaichi administration. Meanwhile, exports rose 5.1% to a record of JPY 10,411.5 billion, marking a fourth straight monthly increase, buoyed by strong year-end foreign demand and a weaker yen. However, the gain fell short of the consensus of 6.1%, as Japanese automakers continued to face a 15% U.S. tariff under the trade deal reached in September. In 2025, Japan logged a trade gap of about JPY 2.65 trillion, down 52.9% from the prior year.
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