Economic Buzz: Japan trade deficit narrows sharply in May

Japan?s trade deficit narrowed significantly to JPY 378.7 billion in May as export growth outpaced imports. Exports surged 17% year-on-year, marking the strongest increase since November 2022 and extending a nine-month streak of growth, supported by resilient semiconductor demand. Meanwhile, imports rose 12.5%, posting their fastest expansion since January 2025 amid solid domestic demand, despite a sharp decline in crude oil shipments following the closure of the Strait of Hormuz.

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