Japan's August Trade Deficit Hits Record High Due to Energy Prices and Yen Weakness

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japan's trade deficit in August reached a record high due to rising international energy and raw material prices and the weak yen.

According to the Nihon Keizai Shimbun on the 15th, Japan's Ministry of Finance announced that the trade balance for August showed a deficit of 2.8173 trillion yen (approximately 27.5 trillion won). Exports increased by 22.1% year-on-year to 8.0619 trillion yen, while imports rose by 49.9% to 10.8792 trillion yen.

The trade deficit exceeded the monthly record set in January 2014 (2.7951 trillion yen), when the Great East Japan Earthquake had a significant impact, marking the largest deficit since 1979, according to Nihon Keizai. In January 2014, fuel imports for thermal power plants surged due to the shutdown of nuclear power plants immediately after the earthquake.

The trade deficit has continued for 13 consecutive months. It is analyzed that the sustained deficit is due to a significant increase in import amounts amid rising international oil prices and a weak yen.

By region, the trade surplus with the United States increased by 20.7% to 471.5 billion yen, showing an upward trend for the first time in two months. Exports of automobiles and automobile parts increased, marking a record high for export value in August. Exports and imports with China also reached record highs, according to Nihon Keizai. The trade balance with China was 576.9 billion yen.

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