Japan Reports First Current Account Deficit in Two Years Amid Rising Import Costs

On March 10, 2025, Japan reported a current account deficit of ¥257.6 billion ($1.75 billion) for January, marking its first deficit in two years. This shift is primarily attributed to a weaker yen increasing import costs and a surge in imports of smartphones and electronic components ahead of the Lunar New Year. Imports rose by 17.7% year-on-year in January, while exports saw a modest increase of 2.1%.