FX.co ★ Japan Trade Balance Swings to Surplus

In February 2025, Japan's trade balance shifted to a surplus of JPY 584.5 billion, recovering from a deficit of JPY 415.43 billion during the same period the previous year. However, this outcome did not meet market expectations, which had anticipated a surplus of JPY 722.8 billion. The turnaround was largely attributed to a substantial rise in exports, which climbed by 11.4% year-on-year to JPY 9,191.14 billion, marking the fastest growth since May 2024, albeit slightly under the projected 12.1%. Meanwhile, imports decreased by 0.7% to JPY 8,606.63 billion, failing to meet the anticipated growth of 0.1% and recording the first decline since November. This drop followed a strong 16.2% increase in January, representing the most significant rise in nearly two years. Throughout 2024, Japan posted a trade deficit of JPY 5,332.56 billion, considerably reduced from the JPY 9,522.07 billion shortfall experienced the year before.