Japan's trade deficit for the first half of this year totaled nearly 8 trillion yen ($58 billion), because of surging oil prices and a sinking yen, brought on partly by the war in Ukraine, and weaker global demand.
The deficit for the period from January through June marked the second consecutive half-year of deficits. The deficit for the six months ended in June totaled 7.92 trillion yen ($57 billion), according to Finance Ministry data released Thursday.
The deficit persisted even as imports for the six months shrank nearly 38% to 53.86 trillion yen ($390 billion), while exports grew 15% to 45.94 trillion yen ($332 billion).
In June, imports surged 46% while exports grew 19%, compared to the same month a year earlier, resulting in a trade deficit of 1.38 trillion yen ($10 billion), the biggest for the month since 2014.
By country, imports from China jumped 33% for the month on-year, while exports edged up 8%. Imports from the U.S. grew 25%, while exports rose 15%. Imports from the Middle East, source of a large share of Japan's energy supplies, jumped 125%.
Junichi Makino, chief economist at SMBC Nikko Securities, noted that exports expanded in June supported by global demand for Japanese cars and computer chips.
The yen has been trading at about 138 yen to the dollar, down from about 110 yen a year ago, because Japan is sticking to a super-easy monetary policy of near-zero interest rates even as other nations, including the U.S., raise rates to combat inflation.
Oil prices have surged since Russia's invasion of Ukraine in February and are now trading at around $100 a barrel.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
You’ve hit your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app