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Japan exports jump in June as weak yen boosts value, trade slips back
Export values rose 19.3% year over year, but export volumes were up only 0.2%, while imports surged 25.4% due in part to a 59.3% spike in petroleum imports, widening the trade deficit to JPY 406.9 billion.
Japan’s exports accelerated sharply in June, rising 19.3% year over year, the fastest pace since November 2022 and above expectations of an 18.6% gain. Action Forex said the pickup followed May’s 16.8% growth and was supported by strong demand for semiconductor manufacturing equipment, along with continued yen weakness that lifted the value of overseas shipments.
The outlet noted that the headline increase was driven more by prices than by shipment volumes. Export volumes rose just 0.2% versus a year earlier, even as yen depreciation continued to inflate export values.
Japan’s imports moved higher even faster, up 25.4% year over year, also the strongest increase since November 2022 and above expectations for a 21.0% rise. Action Forex attributed part of the jump to a 59.3% increase in petroleum imports linked to higher oil prices after the Iran conflict, leaving Japan exposed given that it relies on imports for more than 87% of its energy needs.
As a result, Japan’s trade balance swung to a deficit of JPY 406.9 billion in June, with higher energy costs offsetting gains from stronger export earnings, according to Action Forex.