P.M. BRIEFING : Japan’s Trade Surplus Drops 27%
Japan’s trade surplus dropped 27% in May, the government reported today, giving a sign that the nation’s embarrassingly large gap between exports and imports is finally closing.
The trade surplus with the United States dropped 19%, reinforcing optimism that the overall imbalance may be shrinking.
But economists said the correction process in trade with the United States could be undermined if the dollar’s recent appreciation against the yen continues.
“Even if this month’s trade picture is good, exchange rate developments in coming months could offset the trend and make the Japanese trade surplus increase,” said economist Soichi Enkyo at Bank of Tokyo Ltd.
Japan’s surplus in May narrowed to $3.78 billion from $5.19 billion a year earlier. Although exports were up 4.9% to $21.67 billion, imports climbed a strong 15.7% to $17.89 billion.
Exports to the United States rose 3.2% but imports surged 24.4%.
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