TOKYO (AP) – Japan racked up a trade deficit of JPY294.3 billion (USD2 billion) in September, according to Finance Ministry data released yesterday, as exports fell to key destinations like China.
For the first half of the April to March fiscal year, Japan’s trade deficit, or its imports subtracted from exports, was JPY3.1 trillion (USD21 billion), the preliminary report showed.
Japan’s exports in September fell 1.7 per cent from the same month a year earlier in the first such decline in 10 months. Imports grew 2.1 per cent from the previous year, on the back of a weak yen, which inflates their value.
It was unclear if the drop, which was unexpected, reflected weaker demand in other major economies, since exports to other Asian countries rose.
It also could be partly due to temporary disruptions like a recent typhoon.
But slowing global demand remains a long-term worry for export-dependent Japan.
The US dollar has been trading at JPY149 levels recently, not far from its level a year ago but up from about JPY120 two years ago. Inflation and rising energy prices have also pushed up import costs.
Exports rose 6.6 per cent for the months from April through September to JPY53.55 trillion (USD358 billion) as demand remained strong for computer chips.
Imports grew seven per cent during that period to JPY56.66 trillion (USD379 billion), as Japanese businesses and shoppers bought more United States (US) products, the report said.
In the first half of fiscal 2024, Japan recorded a nearly JPY4.3 trillion (USD29 billion) trade surplus with the US and a JPY3 trillion (USD20 billion) deficit with China.
