Japan Posts Wider-than-Expected Trade Deficit

2026-07-22 00:09 By Farida Husna 1 min. read

Japan's trade balance swung to a deficit of JPY 406.9 billion in June 2026 from a surplus of JPY 122.3 billion in the same month a year earlier, far exceeding market expectations for a JPY 120 billion shortfall.

It was the second straight monthly trade gap, with imports outpacing exports.

Imports surged 25.4% yoy to a record JPY 11,335.9 billion, accelerating from May's 12.5% rise, beating forecasts of 21.0%, and posting the strongest rise since November 2022.

The sharp rise reflected solid domestic demand, boosted by the government's late-2025 stimulus measures.

Crude oil imports jumped 59.3% as Japan diversified energy procurement away from the Strait of Hormuz amid ongoing tensions.

Exports climbed 19.3% to a three-month high of JPY 10,929.0 billion, the strongest gain since November 2022, topping consensus of 18.6%.

Export growth stayed resilient for a tenth month, lifted by a weaker yen and robust demand for AI-related chips despite supply chain disruptions from the Iran conflict.



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Japan Posts Wider-than-Expected Trade Deficit
Japan's trade balance swung to a deficit of JPY 406.9 billion in June 2026 from a surplus of JPY 122.3 billion in the same month a year earlier, far exceeding market expectations for a JPY 120 billion shortfall. It was the second straight monthly trade gap, with imports outpacing exports. Imports surged 25.4% yoy to a record JPY 11,335.9 billion, accelerating from May's 12.5% rise, beating forecasts of 21.0%, and posting the strongest rise since November 2022. The sharp rise reflected solid domestic demand, boosted by the government's late-2025 stimulus measures. Crude oil imports jumped 59.3% as Japan diversified energy procurement away from the Strait of Hormuz amid ongoing tensions. Exports climbed 19.3% to a three-month high of JPY 10,929.0 billion, the strongest gain since November 2022, topping consensus of 18.6%. Export growth stayed resilient for a tenth month, lifted by a weaker yen and robust demand for AI-related chips despite supply chain disruptions from the Iran conflict.
2026-07-22
Japan Trade Gap Narrows Sharply
Japan’s trade deficit narrowed sharply to JPY 378.7 billion in May 2026 from JPY 662.5 billion a year earlier, well below market expectations of JPY 564.6 billion, as exports outpaced imports. Exports rose 17% year-on-year to JPY 9,511.5 billion, accelerating from 14.8% in April while marking the strongest increase since November 2022 and exceeding forecasts of 16.2%. It was also the ninth straight month of sales increase, driven by resilient global demand for semiconductors despite Middle East tensions disrupting supply chains. Meanwhile, imports grew 12.5% to JPY 9,890.2 billion, up from April’s 9.8% gain but slightly below expectations of 12.8%. It pointed to the fourth straight month of import growth and the fastest pace since January 2025, driven by solid domestic demand following the government's late-2025 stimulus measures. Import growth remained robust despite a sharp decline in crude oil shipments following the closure of the Strait of Hormuz.
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Japan’s trade balance swung to a surplus of JPY 301.9 billion in April 2026 from a deficit of JPY 149.5 billion in the same month a year earlier, sharply beating market expectations for a shortfall of JPY 29.7 billion. It was the largest trade surplus since November, as export growth continued to outpace imports. Exports surged 14.8% year-on-year to a near-record JPY 10,507.3 billion, accelerating from an 11.5% rise in March while marking the strongest growth in three months and exceeding the consensus of 9.3%, supported by robust demand from China, the U.S., ASEAN economies, and the EU. Meanwhile, imports increased 9.7% to JPY 10,205.4 billion, easing slightly from March’s 10.9% gain but still exceeding market forecasts of 8.3%. Import demand remained resilient, partly supported by the Japanese government’s sizeable stimulus measures introduced in late 2025. The latest reading marked the third consecutive month of import growth, although it was the softest pace in the sequence.
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