Foreign trade balance in Japan gave a surplus of 308 million dollars in June. Thus, the country recorded a surplus in foreign trade for the first time after July 2021.
Foreign trade statistics in Japan pointed to positive results that eased the pressure felt strongly on the recovery of the economy for a while.
In June, the country’s foreign trade balance gave a surplus of 43 billion yen ($ 308 million). In the Bloomberg survey, the expectation was that the foreign trade balance would open again.
The country’s exports increased by 1.5 percent during the same period, led by shipments of automobiles and construction machinery. Imports, on the other hand, decreased by 12.9 percent due to the sharp decline in fuel shipments to Japan.
According to economists’ assessments, the data carries mixed messages for the economy. On the one hand, the foreign trade surplus is considered to be a positive sign for Japanese businesses, which continue to recover from the effects of the pandemic.
The Bank of Japan’s latest quarterly Tankan report, released earlier this month, boosted confidence among firms across the country, supporting the central bank’s view that the country’s economy is gradually recovering.
On the other hand, the data pointed to the risks to Japan’s growth prospects by drawing attention to the fragilities in the demand situation around the world.
Nomura Securities Co. “If you look at the details, the situation is not very bright. There is a slight recovery on a single month basis, but exports to the US are not on a clear upward trend,” said senior economist Kohei Okazaki.