Japan Faces Persistent Trade Deficit Despite Export Recovery

Japan recorded a $38 billion trade deficit for the third consecutive fiscal year, as rising import costs and a weak yen offset gains from recovering exports.

Japan's trade deficit reached 5.89 trillion yen ($38 billion) in the fiscal year ending March 2024, marking the third year of deficits.
The weakening yen, which recently traded above 150 against the U.S. dollar, has increased the cost of imports while boosting the value of exports.
Exports to China showed a recovery, growing 12% year-over-year, supported by strong technology-related exports.
Japan experienced trade surpluses with the U.S. and some European countries but faced significant deficits with Middle Eastern and Asian nations.
Despite challenges from high import costs and currency devaluation, Japan saw a trade surplus of 366.5 billion yen ($2.4 billion) in March 2024.