Japan’s trade balance recorded a surplus of JPY667.0B in March, falling short of expectations despite a solid rebound from February’s JPY44.3B. The miss came as a sharp rise in imports offset another month of strong export growth, highlighting the growing impact of higher energy costs and Yen weakness.
Exports rose 11.7% yoy, marking a seventh consecutive month of expansion and beating forecasts. The strength was led by robust demand for semiconductors and electronic components, with shipments to China surging 17.7%. In contrast, export growth to the US was more moderate at 3.4%, reflecting ongoing trade frictions and tariff uncertainty.
However, imports rose 10.9% yoy, significantly above expectations of 7.1%. The increase was largely driven by elevated energy prices and the weaker Yen, which has inflated the cost of raw material and fuel purchases.
| Indicator | Actual (YoY) | Forecast | Previous (Feb) |
| Trade Balance | JPY667.0 B | JPY1,106.0 B | JPY44.3 B |
| Exports | +11.7% | +11.0% | +4.0% |
| Imports | +10.9% | +7.1% | +10.3% |
