Tokyo – Japan’s government reported that July saw unprecedented levels of both imports and exports, marking the highest monthly values since comparable data began in 1979. The Finance Ministry said the trade deficit widened to 634.5 billion yen (about $4 billion), the third month in a row the country has run a deficit.
Import surge amid soaring energy costs
Imports jumped 27.8% year‑over‑year to a seasonally adjusted 12.15 trillion yen ($77 billion). The increase is largely attributed to higher oil prices following the war in Iran, which has pushed crude costs upward. Japan, which relies on imported oil, has historically sourced much of its supply through the Strait of Hormuz, a route that remains effectively closed.
Exports rise on strong auto and tech sales
Exports rose 23.2% to 11.51 trillion yen ($73 billion), buoyed by robust automobile shipments to the United States and other markets, as well as healthy demand for semiconductors and other electronic devices. Japan’s export figures have increased every month for nearly a year.
Weak yen: a double‑edged sword
The weak yen, now trading around 158 per dollar, benefits large exporters such as Toyota Motor Corp. by increasing the dollar value of overseas earnings. However, the same currency weakness makes raw materials, food and oil more expensive for Japanese consumers and businesses.
Analysts note that the Bank of Japan’s recent interventions have done little to stabilize the yen, which reflects broader socioeconomic challenges facing the nation.
Policy outlook
Prime Minister Sanae Takaichi’s economic policies have so far shown limited impact on reversing the trade deficit. Nonetheless, with no upcoming election and relatively stable public support, the premier is expected to remain in office for the near term.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
