Japan recorded a trade deficit in May, the first in four months, as imports of electrical machinery surged, helping to offset a jump in exports, the Finance Ministry reported Wednesday.
Preliminary data showed Japan’ s exports rose 17% in May from the same month last year to 9.51 trillion yen ($59.4 billion), while imports rose 12.5% to 9.89 trillion yen ($61.8 billion).
That left a deficit of 378.6 billion yen ($2.4 billion), down from a surplus of 301.9 billion yen ($1.9 billion) in April.
Oil and gas imports fell 1.8% year-on-year due to the Iran war and blockade of the Strait of Hormuz.
A fifth of the world’s oil passed through strait until Feb. 28, when the U.S. and Israel began attacking Iran. Japan has sought to diversify its suppliers.
Imports of electrical machinery jumped 31.5% as the boom in artificial intelligence generated strong demand for computer chips and other components.
Higher prices also have pushed the value of both exports and imports higher. Japan exported fewer vehicles in May but the value of those shipments rose more than 13%. While imports of oil fell 28.5% in value, they plunged 57.3% in volume.
The weak yen was also a factor in boosting imports. The U.S. dollar has been trading at about 160 Japanese yen lately. A year ago, it was at 140 yen levels.
The Bank of Japan raised its benchmark interest rate to 1.0% on Tuesday, the first time since 1995 that the rate has been at that level. It cited inflation as a key concern.
The rate hike has so far not had a noticeable effect on the yen’s value.
