Japan records trade deficit in May

TOKYO (Jiji Press) – Japan posted a customs-approved trade deficit of ¥1,221.3 billion in May, while crude oil imports rose due to higher commodity prices and a weak yen, a government report showed on Wednesday.

According to the preliminary report from the Ministry of Finance, the trade balance was in the red for the second month in a row.

Both imports and exports improved, with the average exchange rate of the dollar against the yen this month reaching ¥155.48, up 14.9% from a year earlier.

Imports rose 9.5% to ¥9,497.9 billion, the second-highest level in May and rose for the second month in a row. The result was led by strong imports from the United Arab Emirates.

Japan’s total imports of petroleum products and crude oil increased by 39.8% and 8.1%, respectively.

Exports rose 13.5% to ¥8,276.6 billion, the largest amount for May and the sixth consecutive month of growth.

Car sales rose 13.6%, helped by the depreciation of the yen and demand from the United States.

Exports of semiconductor manufacturing equipment rose 45.9%, with shipments to China accounting for about 50% of the total value. Shipments of semiconductors and other electronic components rose 24.0%.

In trade with the United States, Japan posted a trade surplus of ¥473.6 billion, an increase of 10.9%. Japan’s trade deficit with mainland China totaled ¥533.1 billion, down 1.5%.