Japan's Exports Rise 5.1% in December on Weaker Yen, Trade Surplus Narrows - JPY

Japan’s exports rose 5.1% year-on-year in December, marking the fourth consecutive monthly gain, supported by a weaker yen and strong demand in non-U.S. markets, government data showed on January 22, 2026. The increase fell short of the 6.1% median forecast. Shipments to the U.S. dropped 11.1%, while exports to China advanced 5.6%. Imports climbed 5.3%, exceeding the 3.6% expected, resulting in a trade surplus of 105.7 billion yen ($667.13 million), well below the projected 356.6 billion yen surplus. The weaker yen has boosted export competitiveness, aided by resilient U.S. demand overall and a September trade deal that capped tariffs at 15% on most goods. Despite December’s U.S. decline, tariff impacts have been milder than anticipated, prompting the Japanese government to raise its fiscal year growth forecast to 1.1% from 0.7%. The Bank of Japan, having raised rates to 0.75% in December—the highest in 30 years—is expected to signal further hikes during its policy meeting ending January 24, as inflation pressures persist amid currency moves and wage growth.