Unexpected Turnaround in Japan's Trade Balance

In a surprising turn of events, Japan reported a significant merchandise trade surplus of ¥130.9 billion (approximately $1.01 billion) in December, as disclosed by the Ministry of Finance on Wednesday. This figure not only surpassed analysts' expectations but also marked a notable improvement from the ¥117.6 billion deficit recorded in November.

Year-on-Year Growth in Exports and Imports

Further analysis reveals a 2.8% increase in exports compared to the previous year, alongside a 1.8% rise in imports for the same period. This growth contrasts sharply with the ¥58.9 billion deficit observed in December 2023, highlighting a positive shift in Japan's trade dynamics.