Japan's November Trade Balance Shows Deficit for 2 Consecutive Months... Impact of Global Demand Decline

Japan Records 7 Trillion Won Deficit in November
Impact of Decline in Semiconductor and Steel Exports
Deficit Narrowed as Energy Imports Decrease

Japan's trade balance recorded a deficit for the second consecutive month as global demand declined due to an economic slowdown.

On the 20th, Japan's Ministry of Finance announced that the trade deficit for November amounted to 776.9 billion yen (approximately 7 trillion won). Exports fell by 0.2% compared to the same month last year, totaling 8.8195 trillion yen, marking a return to negative growth after three months.

By industry, exports of automobiles and semiconductors increased, but exports of steel and semiconductor-related equipment decreased by 10.6% year-on-year, contributing to the widening deficit.

By country, exports declined across Asia (excluding the United States), China, and the European Union (EU). Notably, exports to the EU returned to negative growth for the first time in 33 months.

However, due to a reduction in energy imports, the trade deficit narrowed by 62.2% compared to the same month last year.

Imports last month totaled 9.5965 trillion yen, down 11.9% from the same month last year, continuing a decline for eight consecutive months. The drop in international energy prices, including crude oil, influenced the overall decrease in imports. Last month, imports of liquefied natural gas (493.8 billion yen) and crude oil (1.0832 trillion yen) fell by 34.1% and 11.5%, respectively.

Experts forecast an improvement in the trade balance based on strong exports of automobiles and semiconductors. Toshihiro Nagahama, chief economist at the Dai-ichi Life Research Institute in Japan, explained, "Although there are concerns about a global economic slowdown, supply chain issues are being resolved, and the weaker yen is boosting exports of automobiles and semiconductors. If fossil fuel prices continue to decline, the trade deficit is expected to shrink further."

Meanwhile, Japan also recorded a trade deficit of 662.5 billion yen in October.

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