Japan records first trade deficit since start of 2016

Japan recorded a 40.7 billion yen ($388 million) trade deficit in May, the first deficit since the beginning of 2016, the government said on Monday.

The latest figure contrasts with the 823.2 million yen ($7 million) surplus in April, EFE news reported.

Exports skidded 11.3% year-on-year to 5.09 billion yen ($4 billion) in May, according to data released by the Ministry of Finance.

Imports dropped an annual of 13.18 % to 5.1 billion yen ($4 million).

By country, the deficit with China, Japan's largest trading partner, rose 401.093 billion yen ($3 billion) in April, representing a 4 % year-on-year increase.

With its second largest trading partner, the US, Japan recorded a surplus of 345.63 billion yen ($3 billion), or 14.4 % less.

With the European Union, its third largest trading partner, Japan had a deficit of 73,642 million yen ($703 million), a 24 % rise compared to April 2015.