Japan trade deficit as yen weakens

Japan's trade balance shifted to deficit for the first time in four months, reaching 378.6 billion yen in May. This was caused by the weak yen, which increased the value of imports despite a decline in their volume. Imports rose by 12.5% year-on-year, while exports increased by 17%. However, the roughly 7% decline in import volume led to a deterioration in the trade situation, amid rising costs for energy and electronics imports. The trade deficit is expected to continue, as economic pressures persist and measures are needed to support the domestic economy.

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