Japan posts 14.8% export growth in April, generating large trade surplus as oil imports plunge

Japan's April exports rose 14.8% year‑on‑year, far exceeding the 9.3% forecast, and pushed the trade balance to a surplus of 301.9 billion yen instead of the expected 29.7 billion yen deficit. Shipments to the United States increased 9.5% and to China 15.5%, providing broad geographic support.

Imports grew 9.7%, but crude‑oil imports slumped 64%, the steepest decline since 1980, with import values falling 49.9% – the largest drop since November 2020. Core machinery orders fell 9.4% in March and the flash PMI for May slipped to a five‑month low, signalling weaker manufacturing momentum.

Analysts warn that rising petroleum‑product costs could widen future trade deficits, while the government is weighing a supplementary budget of about 3 trillion yen to address prolonged Middle‑East supply disruptions.