Japan Trade Deficit Shrinks as Exports Rebound
By Rediff Money Desk, Tokyo Jul 18, 2024 11:03
Japan's trade deficit narrowed in the first half of 2023, driven by a recovery in exports, particularly vehicles and computer chips. The weak yen has boosted export values but also increased import costs.
Tokyo, Jul 18 (AP) Japan posted a trade surplus in June, the first in three months, highlighting a recovery in exports, government data showed Thursday.
For the first six months of this year, Japan's trade deficit declined by more than half from the same period last year, to 3.23 trillion yen ($21 billion), according to Finance Ministry data.
The yen's weakness against the U.S. dollar has helped boost Japan's exports in recent months. The trade surplus in June grew five-fold from a year earlier to 224 billion yen, or $1.4 billion, on rising exports of vehicles and computer chips.
The weak yen works as a negative for Japan's imports, especially amid inflationary trends and rising energy costs. Resource-poor Japan imports almost all its energy.
Japan has logged trade deficits for six straight fiscal half-years, starting with the final half of 2021, mainly because of the weak yen and rising global prices. Japan's fiscal year runs from April to March.
For the month of June, imports rose 3% to 8.98 trillion yen ($58 billion), while exports rose 5% to 9.2 trillion yen ($59 billion).
In the first six months of the year, imports rose 0.8% to 54.7 trillion yen ($350 billion), while exports gained nearly 9% to 51.5 trillion yen ($330 billion).
A report by economists at SMBC Nikko Securities, including Koya Miyamae, projects Japan's trade deficit will continue to decline. Exports to the U.S. and Asia rose, those to Europe are lagging, they said.
The U.S. dollar has been rising steading this year, hitting 160-yen levels in recent weeks. The dollar was trading at about 156 yen Thursday. Although a weak yen erodes Japan's purchasing power, it boosts the value of overseas earnings when converted into yen.
For the first six months of this year, Japan's trade deficit declined by more than half from the same period last year, to 3.23 trillion yen ($21 billion), according to Finance Ministry data.
The yen's weakness against the U.S. dollar has helped boost Japan's exports in recent months. The trade surplus in June grew five-fold from a year earlier to 224 billion yen, or $1.4 billion, on rising exports of vehicles and computer chips.
The weak yen works as a negative for Japan's imports, especially amid inflationary trends and rising energy costs. Resource-poor Japan imports almost all its energy.
Japan has logged trade deficits for six straight fiscal half-years, starting with the final half of 2021, mainly because of the weak yen and rising global prices. Japan's fiscal year runs from April to March.
For the month of June, imports rose 3% to 8.98 trillion yen ($58 billion), while exports rose 5% to 9.2 trillion yen ($59 billion).
In the first six months of the year, imports rose 0.8% to 54.7 trillion yen ($350 billion), while exports gained nearly 9% to 51.5 trillion yen ($330 billion).
A report by economists at SMBC Nikko Securities, including Koya Miyamae, projects Japan's trade deficit will continue to decline. Exports to the U.S. and Asia rose, those to Europe are lagging, they said.
The U.S. dollar has been rising steading this year, hitting 160-yen levels in recent weeks. The dollar was trading at about 156 yen Thursday. Although a weak yen erodes Japan's purchasing power, it boosts the value of overseas earnings when converted into yen.
Source: ASSOCIATED PRESS
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- IFL Enterprises
- 1.36 (+ 4.62)
- 119282860
- Franklin Industries
- 3.89 (+ 4.29)
- 32131809
- Vodafone Idea L
- 16.38 ( -2.44)
- 29336345
- Indian Renewable
- 262.00 ( -3.76)
- 16292055
- Tata Teleservices (M
- 95.68 (+ 17.64)
- 14126583
MORE NEWS
Tata Power & NHPC Partner for Rooftop Solar...
Tata Power Renewable Energy and NHPC Renewable Energy join forces to install rooftop...
NHPC CMD Extended: R P Goyal's Charge Extended...
The government has extended Rajendra Prasad Goyal's additional charge as NHPC CMD by...
Strengthening Local Gov't for SDGs: CAG
Comptroller & Auditor General of India stresses the crucial role of local governments...