FX.co ★ Japan Trade Gap Narrows Sharply

In October 2025, Japan's trade deficit narrowed substantially to JPY 231.8 billion, compared to JPY 499.9 billion in the same period the previous year. This figure also surpassed market predictions, which anticipated a deficit of JPY 280 billion. During this period, exports experienced a 3.6% year-on-year rise, reaching a seven-month peak of JPY 9,766.3 billion. This marks the second consecutive month of growth and exceeded expectations of a 1.1% increase, though the growth rate slowed slightly from September's 4.2% uptick. Concurrently, imports grew by 0.7%, achieving a nine-month high of JPY 9,998.1 billion. This indicates a second consecutive month of growth and contrasts with forecasts, which had projected a 0.7% decrease.