Japan's First Half Trade Deficit Hits 105 Trillion Won... "Largest Ever for a Half-Year"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japan's trade deficit in the first half of this year reached a record high on a half-year basis due to rising international raw material prices and the weak yen.

According to NHK and others on the 20th, the Ministry of Finance of Japan announced that the trade balance for the first half of fiscal year 2022 (April to September this year) recorded a deficit of 11.0075 trillion yen (approximately 105.2 trillion won). This is the largest deficit on a half-year basis since comparable statistics began in 1979.

Total exports in the first half amounted to 49.5762 trillion yen, an increase of 19.6% compared to the same period last year. Total imports rose by 44.5% to 60.5837 trillion yen.

The trade balance for September showed a deficit of 2.0939 trillion yen, marking the largest deficit for September on record. The trade balance has continued to show a deficit for 14 consecutive months since July last year.

Japan's worst-ever half-year trade deficit is attributed to the rise in prices of raw materials such as crude oil, liquefied natural gas (LNG), and coal, as well as the weak yen approaching the 150 yen per dollar level. As a result, imports increased significantly, leading to the sustained trade deficit.

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