Japan’s monthly streak of trade deficits hit a two-year mark in June, as exports continued to stay weak while imports remained high. The world’s third largest economy logged a deficit of 822.2 billion yen ($8.1 billion), data showed on Thursday, much wider than the 642.9 billion yen deficit a Reuters poll had forecast.
Exports unexpectedly fell 2 percent from the year-ago period, compared to a Reuters forecast for a 1 percent increase and following a 2.7 percent fall in May.
Imports rose an annual 8.4 percent, in line with expectations and after dipping 3.6 percent on-year in May. “The main reason for the sluggish export growth is due to the sluggish economic growth,” Atsushi Nakajima, Chairman of the Research Institute of Economy, Trade and Industry, told CNBC.