Japan¡¯s trade balance swung to a deficit for the first time in four months as the weak yen inflated the value of imports, even as volumes fell.
The trade balance flipped to a ?378.6 billion ($2.36 billion) deficit in May on an unadjusted basis, the Finance Ministry reported Wednesday. Analysts had forecast a ?547.6 billion deficit.
The value of imports increased 12.5% in May from a year ago while the value of exports gained 17%. However, by volume, imports fell nearly 7%, indicating how the weak yen is making imports more expensive and offsetting the rise in exports, which rose at the fastest pace since late 2022.
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