Japan’s trade deficit decreased to JPY 695.30 billion in August 2024 from JPY 940.10 billion in the same month a year earlier, but it was still above market expectations of a JPY 1,380 billion shortfall.

Japan has posted a trade deficit for a second straight month, as both exports and imports were lower than expected

Japan experienced a trade deficit for the second consecutive month in August, with a total of 695 billion yen. While exports increased by 5.6%, imports grew by 2.3%, with the strongest growth seen in pharmaceuticals from Europe.

Japan's export growth slowed sharply in August as shipments to the U.S. dropped for the first time in three years, while machinery orders unexpectedly shrank in July in a worrying sign for an economy struggling to mount a solid recovery.

Japanese exports rose at a slower-than-expected pace in August, adding to concerns about the outlook for the global economy.