TOKYO, Japan / ConSynSer / – In September, Japan recorded its 13th consecutive month of rising exports, though a faster increase in imports resulted in a trade deficit of 536.6 billion yen. The Ministry of Finance released preliminary data indicating exports grew 16.7% year on year to 10.9723 trillion yen, while imports climbed 18.9% to 11.5088 trillion yen. According to Xinhua News Agency, the deficit was approximately $3.4 billion.
The export growth was driven mainly by strong demand for semiconductors and chip manufacturing equipment. Additionally, products related to artificial intelligence contributed to the shipment increases, as reported by Xinhua. Although September marked Japan’s fifth straight month of trade deficits, the gap significantly shrank from 1.11 trillion yen in August. The pace of import growth slowed from 28.0% in August, partly due to a decline in crude oil arrivals.
Energy prices continue to exert considerable pressure on Japan’s trade balance. The country relies heavily on oil imports and has historically depended on access to the Strait of Hormuz, which has been disrupted by conflicts in the Middle East. Importers have had to pay higher costs to secure shipments through alternative routes. Brent crude prices have risen from around $70 a barrel in February to roughly $110 a barrel.
Trade values reach new heights in first half of fiscal year
From April to September, Japan’s trade deficit totaled 2.81 trillion yen, approximately $17.8 billion, nearly doubling compared to the same period last year. Exports for this half-year increased by 18.4%, reaching 63.5 trillion yen, while imports surged 20.4% to 66.3 trillion yen. Both figures set new records for Japan, reflecting robust trade activity amid rising energy prices.
The surge in oil prices has impacted various sectors, including plastics and shipping industries. Meanwhile, exporters continue to benefit from persistent global demand for chips and related equipment. Japan’s trade figures also hit record levels in July, when imports surpassed exports. The latest figures illustrate a year of strong, yet uneven, trade performance.
Focus on the Bank of Japan’s interest rate trajectory
A declining yen keeps raising the cost of imported goods, with the US dollar now trading at about 150 yen. The Bank of Japan has been gradually raising interest rates, partly to support the yen. It increased its benchmark rate to 1.25% from 1.0% last month, reaching a 31-year high. The policy board is scheduled to meet again next week.
The central bank’s inflation target remains around 2%. Experts suggest that oil prices are unlikely to decrease soon, implying that import expenses will stay elevated. The Ministry of Finance’s upcoming monthly report will reveal if export growth driven by chips can offset rising energy costs. Japan’s trade outlook continues to be closely linked to global energy market developments.