Eigen RadarEconomics
Archive
Analysis

Japan’s trade deficit widens despite export growth

Japan’s September merchandise exports rose 16.7 per cent, but imports grew faster and the trade deficit widened to 536.558 billion yen. Semiconductor shipments gained value while energy import bills rose sharply. The provisional customs figures show different changes in trade value and physical volumes, alongside a surplus with the United States and a deficit with China.

Economics & Markets··Morning
Conceptual Japanese LNG terminal: a spherical-tank carrier is moored beside unloading arms and pipes leading to shore tanks, with a Japanese flag nearby.

Imports rise faster than exports

Japan posted a September merchandise trade deficit of 536.558 billion yen. The provisional customs statistics released on October 21 put the balance further into deficit than a year earlier.[1], [2]

Exports increased 16.7 per cent to approximately 10.972 trillion yen, while imports rose 18.9 per cent to about 11.509 trillion yen. The deficit had been 277.703 billion yen a year earlier; its annual increase was 93.2 per cent. These are unadjusted current-yen values, with exports measured free on board and imports including goods, insurance and freight. The percentage changes compare September with the corresponding month of the previous year.[1]

The US balance stays in surplus

Exports to the United States grew 22.9 per cent to around 1.963 trillion yen. Imports from the United States increased 44.8 per cent to approximately 1.570 trillion yen, leaving a surplus of 392.809 billion yen. Exports to China rose 8.6 per cent to about 1.730 trillion yen and imports from China increased 16.4 per cent to roughly 2.757 trillion yen. The resulting deficit with China was around 1.027 trillion yen.[1]

Energy import bills outpace volumes

Semiconductor export value grew 49.4 per cent and semiconductor manufacturing equipment value rose 43.9 per cent. Motor vehicle export value increased 15.1 per cent even as the number of vehicles fell 0.5 per cent. Petroleum imports increased 51.1 per cent in value and 3.1 per cent in volume. Liquefied natural gas import value rose 39.2 per cent while volume declined 7.3 per cent. Coal import value increased 26.9 per cent as volume fell 1.0 per cent.[1]

References

  1. News sourceJapan Ministry of FinanceJapan’s September exports rise 16.7% as trade deficit widens↩1↩2↩3↩4
  2. News sourceFisco / DiamondFisco reports Japan’s September trade deficit at ¥536.558 billion↩
Chip wars and the supply chainEnergy transition and climate

More analysis from this desk

View all Brief analyses from the Economics & Markets desk →