TOKYO, Japan / ConSynSer / – In September, Japan recorded its 13th consecutive month of rising exports, though a faster increase in imports resulted in a trade shortfall of 536.6 billion yen. The Ministry of Finance released preliminary data indicating exports grew by 16.7% year-on-year to 10.9723 trillion yen. Meanwhile, imports climbed 18.9% to 11.5088 trillion yen. According to Xinhua News Agency, the deficit is approximately $3.4 billion.
The surge in exports was driven by strong demand for semiconductors and chip manufacturing equipment. Additionally, products related to artificial intelligence supported the shipment figures, as reported by Xinhua. September marked Japan’s fifth consecutive month of trade deficits, although the gap significantly narrowed from 1.11 trillion yen in August. Import growth slowed from 28.0% in August, partly due to a decrease in crude oil arrivals.
Energy prices continue to exert significant pressure on Japan’s trade balance. The country relies almost entirely on oil imports and has depended on access to the Strait of Hormuz, which has been disrupted by conflicts in the Middle East. To secure shipments through alternative routes, importers have faced higher costs. Brent crude oil prices have risen from around $70 per barrel in February to approximately $110 a barrel.
Trade values hit record highs in the first half of fiscal year
Between April and September, Japan’s trade deficit reached 2.81 trillion yen, roughly $17.8 billion, nearly doubling compared to the same period last year. Exports for this half-year increased by 18.4% to 63.5 trillion yen, while imports soared by 20.4% to 66.3 trillion yen. Both figures set new records for Japan, reflecting robust trade activity amid rising energy prices.
The escalation in oil prices is impacting a broad spectrum of industries, including plastics and shipping sectors. At the same time, exporters continue to benefit from global demand for chips and related equipment. Japan’s trade figures had previously reached records in July, when imports exceeded exports. The latest data extend a year characterized by strong yet uneven trade performance.
Attention turns to Bank of Japan’s interest rate trajectory
A weakening yen persists in raising the cost of imported goods, with the US dollar trading at approximately 150 yen. The Bank of Japan has been gradually raising interest rates, partly to support the yen. Last month, it increased its benchmark rate to 1.25% from 1.0%, reaching a 31-year high. Its policy board is scheduled to meet again next week.
The central bank aims for an inflation rate around 2%. Analysts believe that oil prices are unlikely to decline soon, implying that import expenses will remain high. The Ministry of Finance’s upcoming monthly report will reveal whether export growth driven by chips can keep pace with rising energy costs. Japan’s trade performance continues to be closely linked to developments in global energy markets.