Japan's export sector showed remarkable resilience and growth in May, with a surge of 13.5% compared to the same period last year. The total value of exports reached 8.3 trillion yen ($53 billion), surpassing earlier expectations and marking the fastest rate of expansion since November 2022 [901cde0d]. Key among Japan's export destinations was the United States, where shipments increased by nearly 24%. Additionally, exports to other Asian countries rose by over 13% [901cde0d]. However, trade with Europe faced challenges, leading to a decline in trade volumes compared to previous periods [901cde0d]. The weak yen and rising prices played a significant role in driving the growth of both exports and imports. The trade deficit decreased to 1.22 trillion yen in May, down nearly 12% from the same month last year [9f0fca00]. Imports also grew by 9.5% to a five-month peak of 9.5 trillion yen, driven primarily by higher demand for energy resources such as oil, gas, and other fuels [901cde0d]. The depreciation of the yen against major currencies, including the U.S. dollar, was a key factor shaping Japan's trade dynamics during this period [901cde0d]. The Bank of Japan's decision-makers debated the impact of the weak yen on inflation, as the fear of deflation persists in Japan [8e7b5288]. Despite these challenges, Japan continues to leverage its strengths in advanced manufacturing and technological innovation to sustain export growth in a competitive global marketplace [901cde0d].
Mexico's exports to the United States also reached an all-time high in May, with revenue increasing 6.1% in annual terms to almost $44 billion. Mexico has consolidated its position as the world's top exporter to the US, surpassing China. Mexican exports to the US were worth $43.88 billion in May, the highest monthly amount on record. The value of Mexican exports to the US increased every month this year compared to the previous month. Mexico's share of the US import market is 15.9%, ahead of Canada and China. Mexico's advantage over Canada in terms of market share has increased from 1.7 points in 2023 to 2.7 points in 2024. Mexico remains the top trade partner of the US, with trade between the two countries totaling $345.45 billion in the first five months of the year. Mexico had a trade surplus of $68.14 billion with the US in the first five months of 2024. NAFTA had a profound impact on the Mexican economy, with the value of Mexico's exports to the US increasing exponentially since its implementation [4fcedee7].