A deficit because of the Lunar Year holiday is a blip and isn't a concern for the economy. While strong domestic demand is fueling import growth, which partly led to the deficit, it's a good thing because it signals resilient demand.
Overseas demand for autos, IT goods and construction machinery which had long supported the overall economic activity in Japan, is now set to slow down, while input cost for Japanese companies is rising.
There is uncertainty over the trend of imports of IT (information technology) goods in the US, where IT investment is running at a historically high level,