Trade deficit in July post BoJ’s rate rise

Tue, 08/20/2024

by Ellie LeTu

Source: WSJ

• Trade deficit amount exceed estimation

  • Reported trade deficit of $4.28B, double the forecasted amount.

  • Imports exceeded exports, despite a 10.3% increase in chip-driven exports.

• More imports

  • Wages have risen, people can splurge on imported goods.

  • Overseas products are cheaper as the Yen value got stronger after BoJ rate cut.

• Less exports

  • Recessive global economy slows down export.

  • Exported Japanese goods are more expensive overseas as the Yen value got stronger after BoJ rate cut.