Japan Has Surprise Deficit as Import Growth Beats Exports

Japan had a surprise trade deficit in May, as stronger-than-expected imports overpowered the best export growth in more than two years.

Japan’s trade has seen a sustained pickup since the start of the year, with five consecutive months of growth in both exports and imports. It’s indicative of an increasingly healthy global economy and a relatively competitive yen. The Bank of Japan has expressed optimism that private consumption will join exports in helping drive Japan’s economic recovery.