Japan Records Trade Surplus for 5 Consecutive Months... November Exports Down 4.2%

Concerns Over 'Recession-Type Surplus' with Export Decline Exceeding Imports

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japan has continued its trade surplus streak for five consecutive months. Due to the impact of the novel coronavirus infection (COVID-19), the overall trade volume has decreased, leading to what is being called a "recession-type" surplus, where imports have declined more sharply than exports.

According to NHK and other sources on the 16th, the Japanese Ministry of Finance announced through trade statistics that exports in November this year decreased by 4.2% compared to the same period last year, totaling 6.1136 trillion yen (approximately 64.65 trillion won), while imports fell by 11.1% to 5.7469 trillion yen. As a result, Japan recorded a trade surplus of 366.8 billion yen in November, marking five consecutive months of trade surpluses.

Japan's trade surplus is being pointed out as a recession-type surplus caused by a larger decline in imports amid a reduction in total trade volume due to the impact of COVID-19. Japan's exports have decreased for 24 consecutive months through November this year, and imports have declined for 19 consecutive months. NHK reported, "Japan's export value, which decreased due to the impact of COVID-19, hit a low point in May this year and showed signs of recovery, almost reaching last year's level by October, but the recent resurgence of COVID-19 appears to have expanded the decline."

By region, exports to the United States, including aircraft parts, decreased, turning to a decline for the first time in three months. Exports to China increased by 3.8%, marking five consecutive months of growth, but electronic components such as semiconductors fell by 17.0%, and chemical products dropped by 28.3%. Trade with South Korea recorded a surplus of 151.6 billion yen in November, an increase of 43.7% compared to the same period last year.

This content was produced with the assistance of AI translation services.