Japan Trade Deficit Narrows Sharply
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Japan’s trade deficit decreased significantly to JPY 1,152.7 billion in January 2026 from JPY 2,741.7 billion in the same month a year earlier, beating market expectations for a JPY 2,142.1 billion shortfall, as exports jumped while imports declined.Year-on-year, exports surged 16.8% to JPY 9,187.5 billion, sharply accelerating from a 5.1% growth in December and marking the fastest rise since November 2022, buoyed by strong foreign demand at the start of a new year.Meanwhile, imports dropped 2.5% to JPY 10,340.2 billion, missing estimates of a 3% increase and reversing a 5.2% growth in December.
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