Pequim, June 18 (Xinhua) — Japan’s Ministry of Finance released data on Wednesday showing that the country’s exports in May fell 1.7% year-on-year, the first decline in eight months, amid the impact of US tariff policies on global trade. The decline was smaller than analysts’ expectations of 3.7%, with automobiles, steel, and mineral fuels being the main drag factors. The import volume decreased by 7.7% during the same period, with significant reductions in crude oil and coal imports. Japan’s trade balance has shown a deficit for the second consecutive month, with the deficit widening to 637.6 billion yen (approximately 4.4 billion US dollars).
The shrinking exports and widening trade deficit have intensified market concerns – if the economy continues to shrink in the second quarter, Japan will fall into a technical recession. Atualmente, domestic consumption in Japan continues to be weak, and inflation growth is still faster than wage growth.