JAPAN recorded a 621 billion yen ($4.3 billion) trade deficit in July as imports surged 17% while exports rose by 10%.
The widening gap is fueled by higher import costs, driven by increased prices for goods and a weaker yen. The struggling auto industry, impacted by production issues and a recent testing scandal, also contributed to the slower export growth.
This deficit marks a shift from June’s trade surplus, continuing a trend of deficits over the past six fiscal half-years. With the yen now hovering around 145 to the dollar, Japan’s economy faces added pressure from rising global energy prices.
Markets are closely monitoring potential interest rate decisions from the U.S. Federal Reserve and the Bank of Japan.
