TOKYO, Japan / ConSynSer / – Japan’s exports recorded their 13th consecutive monthly rise in September, though a more rapid increase in imports resulted in a trade deficit of 536.6 billion yen. The Ministry of Finance provided preliminary data indicating exports climbed 16.7% year on year to 10.9723 trillion yen. Meanwhile, imports grew by 18.9% to reach 11.5088 trillion yen. According to Xinhua News Agency, the deficit was approximately $3.4 billion.
The export growth was primarily driven by strong demand for semiconductors and chip-making tools. Additionally, products related to artificial intelligence contributed to the shipment increase, as noted by Xinhua. September marked Japan’s fifth straight 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 considerable pressure on Japan’s trade balance. Since Japan imports almost all of its oil and relies on access to the Strait of Hormuz, disruptions caused by conflict in the Middle East have impacted supply routes. Importers have faced higher costs to secure shipments through alternative channels. Brent crude oil prices have risen from about $70 a barrel in February to roughly $110 a barrel.
Trade values hit record levels in the first half of fiscal year
Japan’s trade deficit for the April to September period reached 2.81 trillion yen, approximately $17.8 billion, nearly doubling compared to the same period last year. Exports for the six months increased by 18.4%, totaling 63.5 trillion yen, whereas imports surged by 20.4%, reaching 66.3 trillion yen. Both figures represented historic highs for Japan, reflecting vigorous trade activity alongside rising energy prices.
The escalation in oil prices is influencing various sectors, including plastic manufacturing and shipping industries. Conversely, exporters continue to benefit from sustained global demand for chips and related equipment. Japan’s trade figures had previously set records in July, when imports exceeded exports. The latest data reinforce a year marked by robust yet uneven trade performance.
Focus on Bank of Japan’s interest rate trajectory
A declining yen continues to increase the cost of imported goods, with the US dollar trading at about 150 yen. The Bank of Japan has been gradually raising interest rates, partly to support the currency. Its benchmark rate was increased to 1.25% from 1.0% last month, reaching a 31-year high. The policy board is scheduled to meet again next week.
The central bank aims for an inflation rate of around 2%. Experts suggest that oil prices are unlikely to drop soon, which indicates that import costs will remain high. The Ministry of Finance’s upcoming monthly report will reveal whether export growth driven by chips can keep pace with increasing energy expenses. Japan’s trade results remain closely linked to developments in global energy markets.