Japan: Merchandise exports gain steam in June
Yen-denominated merchandise exports shot up 19.4% over the same month last year in June, following May’s 15.8% upturn. June’s result marked the most robust expansion since November 2021. Meanwhile, merchandise imports climbed 46.1% over the same month last year in June (May: +48.9% yoy).
As a result, the merchandise trade balance improved from the previous month, recording a JPY 1.4 trillion deficit in June (May 2022: JPY 2.4 trillion deficit; June 2021: JPY 0.4 trillion surplus). Lastly, the trend pointed down, with the 12-month trailing merchandise trade balance recording a JPY 10.4 trillion deficit in June, compared to the JPY 8.6 trillion deficit in May.
Analysts at EIU commented on the trade outlook:
“The outlook for improvement in the external sector remains weak, with structural headwinds unlikely to ease significantly in the coming months. EIU expects Japan to record a substantial merchandise trade deficit in 2022, which will be a drag on growth and the current account this year.”