Tokyo, 17 November, /AJMEDIA/
Japan posted a 2.16 trillion yen ($15.5 billion) trade deficit in October, a record for the month, as imports surged to their largest amount on higher energy prices and the yen’s sharp slide, far outpacing exports, Finance Ministry data showed Thursday.
Imports, which were at a historical record high, jumped 53.5 percent from a year earlier to 11.16 trillion yen led by crude oil, liquefied natural gas and coal. Exports gained 25.3 percent to 9.00 trillion yen after shipments of cars and electronics components increased, highlighting strong overseas demand.
Comparable data became available in 1979.
For the past six months, Japan has seen a record trade deficit for each month, as rising energy and raw material costs have dealt a blow to the resource-scarce nation. October marked the 15th straight month of red ink.
The yen’s rapid weakening has magnified that impact, prompting Japan to intervene in the foreign exchange market by buying the yen for U.S. dollars to slow the Japanese currency’s decline, likely on multiple occasions in October.
Higher auto exports to the United States helped Japan report a trade surplus of 720.36 billion yen. Both exports to and imports from the United States hit their highest levels for the month.
Still, increased imports of smartphones and personal computers led Japan to post a trade deficit of 671.35 billion yen with China, a major trading partner.
Japan’s trade deficit came to 152.97 billion yen with the rest of Asia, including China, and 214.11 billion yen with the European Union.
Japan’s economy unexpectedly contracted in the three months to September, weighed down by soaring import costs that count as a negative for gross domestic product, and slowing growth in consumption.
Aggressive monetary tightening in the United States and other advanced economies have raised concerns about slowing exports from Japan going forward, coinciding with worries about a slowing Chinese economy due to its zero-COVID policy and property woes.