Kathmandu. Japan reported a trade deficit of 1.15 trillion yen (about $7.5 billion) in January this year. This is the first trade deficit in the last three months.

According to the government data made public on Wednesday, although there was a significant increase in exports, the overall trade balance was in deficit due to the high volume of imports.

Exports rose 16.8 percent to 9.19 trillion yen in January, according to a preliminary report from Japan’s finance ministry. Exports rose 5.1 percent in the previous month, compared with a significantly higher January increase. The expansion in exports indicates strong demand for Japanese goods in the external market.

Imports fell 2.5 percent year-on-year to 10.34 trillion yen. In the previous month, imports had increased by 5.3 percent. Although the import has decreased, its total size is bigger than export, which is why the trade deficit has been maintained. The import structure of energy, raw materials and consumer goods has also affected the trade balance.

According to economists, while export growth will support the economy to some extent, the global economic situation, currency fluctuations and domestic demand are likely to further impact the trade balance in the coming months. The government has also expressed concern on the impact of the upcoming economic policy on export promotion and import management.