TOKYO, Japan / ConSynSer / – In September, Japan experienced its 13th consecutive month of rising exports, though a faster increase in imports resulted in a trade deficit of 536.6 billion yen. According to preliminary data from the Ministry of Finance, exports grew by 16.7% year on year to 10.9723 trillion yen, while imports rose by 18.9% to 11.5088 trillion yen. Xinhua News Agency estimated the trade shortfall at approximately $3.4 billion.
The export increase was driven primarily by strong demand for semiconductors and equipment used in chip manufacturing. Additionally, products related to artificial intelligence contributed to the shipment growth, as reported by Xinhua. September marked Japan’s fifth consecutive month of trade deficits, although the gap significantly shrank from 1.11 trillion yen in August. The pace of import growth slowed from 28.0% in August, partly due to a decline in crude oil arrivals.
Energy expenses continue to exert significant pressure on Japan’s trade balance. The country imports nearly all of its oil and relies on access to the Strait of Hormuz, which has been disrupted by conflicts in the Middle East. As a result, importers face higher costs to secure shipments through alternative routes. Brent crude prices have increased from around $70 per barrel in February to roughly $110 a barrel.
Trade values hit record levels in the first half of fiscal year
Between April and September, Japan’s trade deficit reached 2.81 trillion yen, approximately $17.8 billion, nearly doubling compared to the same period last year. During this half-year, exports increased by 18.4% to 63.5 trillion yen, while imports surged by 20.4% to 66.3 trillion yen. Both figures marked historic highs for Japan, reflecting vigorous trade activity amid rising energy costs.
The surge in oil prices has impacted multiple sectors, including plastics manufacturing and shipping. Meanwhile, exporters continue to benefit from global demand for chips and related equipment. Japan’s trade figures previously reached records in July, when imports surpassed exports. The latest data highlight a year of robust yet uneven trade performance.
Focus shifts to the Bank of Japan’s interest rate trajectory
A declining yen continues to elevate 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 its currency. Last month, it increased its benchmark rate to 1.25% from 1.0%, reaching a 31-year high. The policy board is scheduled to meet again next week.
The central bank aims for an inflation target of around 2%. Analysts believe that oil prices are unlikely to decrease soon, suggesting that import costs will remain high. The Ministry of Finance’s upcoming monthly report will reveal whether export growth driven by chips can continue to match rising energy expenses. Japan’s trade outlook remains closely linked to global energy market developments.