Tuesday, August 9, 2022
HomeMoney & LoansJapan trade deficit grows despite improved exports as oil prices surge

Japan trade deficit grows despite improved exports as oil prices surge

Japan’s trade deficit for the first half of this year totaled nearly 8 trillion yen ($58 billion), because of surging oil prices and a sinking yen, brought on partly by the war in Ukraine, and weaker global demand.

The deficit for the period from January through June marked the second consecutive half-year of deficits. The deficit for the six months ended in June totaled 7.92 trillion yen ($57 billion), according to Finance Ministry data released Thursday.

The deficit persisted even as imports for the six months shrank nearly 38% to 53.86 trillion yen ($390 billion), while exports grew 15% to 45.94 trillion yen ($332 billion).

In June, imports surged 46% while exports grew 19%, compared to the same month a year earlier, resulting in a trade deficit of 1.38 trillion yen ($10 billion), the biggest for the month since 2014.

By country, imports from China jumped 33% for the month on-year, while exports edged up 8%. Imports from the U.S. grew 25%, while exports rose 15%. Imports from the Middle East, source of a large share of Japan’s energy supplies, jumped 125%.

Junichi Makino, chief economist at SMBC Nikko Securities, noted that exports expanded in June supported by global demand for Japanese cars and computer chips.

The yen has been trading at about 138 yen to the dollar, down from about 110 yen a year ago, because Japan is sticking to a super-easy monetary policy of near-zero interest rates even as other nations, including the U.S., raise rates to combat inflation.

Oil prices have surged since Russia’s invasion of Ukraine in February and are now trading at around $100 a barrel.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

mail Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

%d bloggers like this: