Japan’s Trade Deficit Extends to Four Months as Imports Surge on High Oil Prices

【Financial News, Tokyo = Seo Hyejin, Correspondent】Japan recorded a trade deficit of 1.1056 trillion yen (approximately 9.7624 trillion won) last month. Although exports rose 19.3%, imports grew faster due to higher crude oil prices and increased imports of electronic components, including semiconductors, extending the deficit to four consecutive months.
According to preliminary trade statistics for August released by Japan’s Ministry of Finance (MOF) on the 16th, exports rose 19.3% year on year to 10.0483 trillion yen (approximately 88.7265 trillion won), while imports increased 28.0% to 11.1539 trillion yen (approximately 98.4889 trillion won). Exports rose for the 12th consecutive month, while imports increased for the seventh straight month.
Exports were driven by strong shipments of electronic components to China and automobiles to the United States. On the import side, crude oil, electronic components from Asia, and liquefied natural gas (LNG) from the United States contributed to the increase.
Crude oil imports were particularly notable, surging 58.7% to 1.1905 trillion yen (approximately 10.5121 trillion won). The increase was largely attributable to a 53.1% rise in the yen-denominated import price to 102,684 yen per kiloliter (approximately 906,700 won). Import volume rose only 3.6% to 11.59 million kiloliters.
A shift in sourcing routes amid instability in the Middle East was also evident. Imports of U.S. crude oil rose to 3.65 million kiloliters, about seven times the level recorded in the same month a year earlier. In contrast, imports from the Middle East fell 30.9% to 7.25 million kiloliters.
However, imports from the Middle East have recently shown signs of recovery after falling to 3.84 million kiloliters in April, the lowest level since comparable records began in January 1979. Imports of crude oil from Asia also increased 20.8% to 40,000 kiloliters.


[email protected] Seo Hyejin Reporter