TOKYO (AP) – Japan posted its first trade surplus in six years in 2016 thanks to a rebound in exports late in the year and persisting low oil prices, though uncertainties over U.S. policy and global growth are overshadowing the recovery.
The 4.1 trillion yen ($35.8 billion) surplus in 2016 compared with a 2.8 trillion yen deficit in 2015, the government reported Wednesday. Exports fell 7.4 percent from a year earlier to 70.04 trillion yen ($617 billion) while imports dropped 16 percent to 66 trillion yen ($581 billion), the report showed.
But December’s data showed a strong rebound in exports to China and some other Asian countries, suggestion a recent uptick in growth in Asia’s biggest economy is filtering through supply chains across the region.
A weakening in the Japanese yen against the U.S. dollar since Donald Trump was elected president also increased the value of exports in yen terms. A dollar now buys about 114 yen, up from about 101 yen at the time of the Nov. 8 election.
In the full year, Japan’s trade surplus with the U.S. fell nearly 5 percent, to 6.8 trillion yen ($59 billion). Exports fell 7.1 percent from the year before to 14.1 trillion yen ($124.6 billion) and imports dropped 7.3 percent to 7.3 trillion yen ($64.4 billion), the report said.