Japan Posts Larger than Expected Trade Gap

Japan’s trade deficit surged sharply to JPY 2,027.4 billion in November 2022 from a JPY of 973.6 billion in the same month a year earlier and compared with market consensus of a gap of JPY 1,680.3 billion. This was the 16th straight month of the deficit which was the longest stretch since 2015, adding to concerns over the strength of the country’s economic recovery. Imports climbed 30.3% yoy to JPY 10,864.9 billion, while exports grew at a softer 20.0% to JPY 8,837.5 billion. Considering the first eleven months of the year, Japan logged a trade gap of JPY 18,417.0 billion, compared with a surplus of JPY 415.4 billion in the corresponding period in 2021. Meantime, the country’s trade deficit for the first half of FY 2022/2023 stood at JPY 11 trillion, the largest on record.