Japan Posts Record ¥20 Trillion Trade Deficit in 2022

[beijingwalker]

Japan Posts Record ¥20 Trillion Trade Deficit in 2022​

Economy Feb 1, 2023
The depreciation of the yen and soaring energy prices meant Japan registered its highest ever trade deficit in 2022.

Japan’s balance of trade (exports minus imports) for 2022 announced by the Ministry of Finance showed a deficit of ¥20.0 trillion. This far exceeds the ¥12.8 trillion deficit of 2014, marking the largest trade shortfall since comparative statistics were first available in 1979. This is the second consecutive year for Japan to suffer a trade deficit. Imports have risen significantly due to the combination of a depreciating yen and soaring energy prices resulting from Russia’s invasion of Ukraine.

Imports increased 39.2% year on year, to ¥118.2 trillion, surpassing the ¥100 trillion mark for the first time in history. Imports of unrefined crude oil and liquefied natural gas shot up to ¥13.3 trillion (91.5% increase) and ¥8.5 trillion (97.5% increase), respectively. Crude oil prices rose 76.5% year on year in yen terms and 47.6% in dollar terms. The unit price in yen was a record high of ¥84,728 per kiloliter.

Japan’s exports rose 18.2% year on year, to a record high of ¥98.2 trillion, on the back of strong sales of automobiles (21.4% increase to ¥5.6 trillion), steel (24.2% increase to ¥4.7 trillion), and other commodities. But this increase was not enough to offset the surging imports.

By country or region, Japan enjoyed a ¥6.5 billion surplus with the United States, but registered a ¥5.8 billion deficit with China. The trade deficit with Middle Eastern countries rose to ¥12.7 billion due to the soaring energy prices.

In the past, Japan accumulated huge trade surpluses as an export powerhouse, resulting at times in severe trade friction with the United States. This was followed by a shift to overseas production of commodities that had generated trade surpluses, such as automobiles and electronics, while imports of LNG and crude oil surged amid the return to thermal power generation after the 2011 Fukushima nuclear accident. The combination of these factors has placed Japan in the difficult situation of confronting trade deficits that can balloon under the influence of changes in exchange rates and the prices of raw materials.

Japan Posts Record ¥20 Trillion Trade Deficit in 2022

The depreciation of the yen and soaring energy prices meant Japan registered its highest ever trade deficit in 2022.

www.nippon.com

 

[beijingwalker]

And Japan still decides to follow US command and ban lucrative chip exports to China, one suicide after another.

 

[REhorror]

Oh no, this is terrible news for Japan!

 

[beijingwalker]

Japan books record trade deficit of 26 bln USD in January 2023​

16/02/2023

Tokyo: Japan booked a record trade deficit in January owing to rising energy costs and the pace of exports slowing, the government said in a report on Thursday.

According to the Finance Ministry, the country’s trade deficit in January stood at 3.5 trillion yen (26.16 billion U.S. dollars) and marked an 18th straight month of red ink.

Imports jumped 17.8 percent to 10.05 trillion yen (75.13 billion dollars) in the recording period, the ministry said, while exports were up 3.5 percent to 6.55 trillion yen (48.96 billion dollars).

With the United States, it booked a slight surplus of 280.7 billion yen (2.09 billion dollars), the ministry said.

Japan books record trade deficit of $26 bn in January

Tokyo, Feb 16 (IANS): Japan booked a record trade deficit in January owing to rising energy costs and the pace of exports slowing, the government said in a report on Thursday. According to the Finance Ministry, the country's trade deficit in January stood at 3.5 trillion yen (26.16 billion US...

www.daijiworld.com

 

[StraightEdge]

I am wondering where will they get money to double their defence spending.

Japan defence: China threat prompts plan to double military spending - BBC News

 

[beijingwalker]

Japan's Trade deficit smashes record, tops US$22bil​

• Friday, 17 Feb 2023

TOKYO: Japan’s trade deficit has surged to a record in January, as one-off factors including the lunar new year holidays dragged on exports amid a backdrop of a slowing global economy.

The trade gap jumped to 3.5 trillion yen (US$26bil or RM115bil) from 1.45 trillion yen (US$11bil or RM48bil) in December, topping three trillion yen (US$22bil or RM97bil) for the first time in comparable data going back to the late 1970s, the finance ministry reported yesterday.

The deficit far exceeded the previous record, although it was smaller than analysts’ estimates.

Export growth slowed sharply to 3.5%, with chip-making equipment among the largest drags, in a sign of weakening global tech-sector demand.

The value of shipments to China sank 17.1%, dragged down by cars, auto parts and chip machinery.

Exports to the United States and Europe also grew at a weaker pace of 10.2% and 9.5% respectively. Imports meanwhile continued to show double-digit gains with a 17.8% increase from a year ago, as costly energy shipments continued to inflate the import bill. Japanese firms also likely tried to secure inventory from China before lunar new year celebrations. The record deficit casts a cloud over Japan’s economy, as it struggles for recovery momentum with a new Bank of Japan (BoJ) governor set to take over from Haruhiko Kuroda and his decade of monetary easing. While one-off factors contributed to the deficit, the government and the central bank will need to keep a close eye on how much growth is slowing abroad.

“Japan’s exports are unlikely to show a strong pickup so the overall economy will probably continue to have a lacklustre recovery,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

“That will be a headache for the BoJ when it consider normalisation.”

China’s sudden turnaround on its virus policy has also meant a hit to Japan’s exports, as Covid cases surged following the end of China’s zero-Covid policy, causing disruption across the country.

Shipments to China and other Asian countries account for more than 50% of Japan’s overall exports.

Looking ahead, economist Yuki Masujima expects the trade deficit to narrow sharply in February, driven by a year-on-year jump in exports.
“The average of the shortfalls in January and February, though, will probably be on par with the deficit in December 2022.” — Bloomberg

Trade deficit smashes record, tops US$22bil

TOKYO: Japan’s trade deficit has surged to a record in January, as one-off factors including the lunar new year holidays dragged on exports amid a backdrop of a slowing global economy.

www.thestar.com.my

 

[REhorror]

Seems like the bad news won't stop for Japan.

 

[beijingwalker]

Japan used to be the world biggest surplus country,but now its manufacturing global share had been largely taken by the new emerging nations. Japan has another problem is the country doesn't have much natural resources and needs to import all raw material and energy from other countries.

 

[beijingwalker]

Japan March export growth slows, annual trade deficit widens to record​

By Tetsushi Kajimoto

• March exports up 4.3% yr/yr, slowing from Feb +6.5%
• China-bound exports down 4th mth despite lifting 'zero corona'
• FY2022 trade deficit 21.7 trln yen - largest amount on record

TOKYO, April 20 (Reuters) - Japan's export growth slowed in March, dragged down by a drop in China-bound shipments of cars and steel in a slide that underscores concern about slackening global demand amid higher interest rates and Western banking-sector jitters.

Import growth outpaced exports in March, due to the hefty cost of coal, crude and oil products, helping bring the annual trade deficit in the world's third-biggest economy to a record 21.7 trillion yen ($161 billion). It exceeded the previous record of 13.7 trillion yen in fiscal 2013.

The yen's depreciation by 16.5% from the same month a year earlier also boosted the value of imports, rather than driving up external shipments as Japanese exporters have shifted production overseas during previous periods of yen strength.

Thursday's data, released by the Ministry of Finance, showed exports rose 4.3% in March from a year earlier, logging a 25th straight month of increase, led by shipments of U.S.-bound cars. That was above economists' median estimate of a 2.6% gain, but below a 6.5% increase in February.

Reuters Graphics

Analysts say Japan's trade deficit will persist for the time being as exports weaken.

"Chinese consumption lacks strength even after zero-COVID curbs were lifted," said Takeshi Minami, chief economist at Norinchukin Research Institute.

"Effects of the fully-fledged monetary tightening in the West since last summer will play out in their economies, causing Japan's exports to turn downward going forward."

A months-long global monetary policy tightening streak to curb red-hot inflation has raised the spectre of a worldwide recession, while the recent failure of two mid-sized U.S. banks as well as troubles at Credit Suisse, have raised worries about a credit crunch.

Thursday's data showed imports rose 7.3% in the year to March, below the median estimate of an 11.4% increase and after the prior month's 8.3% gain.

The trade balance in March came to a deficit of 754.5 billion yen versus the median estimate for a deficit of 1.29 trillion yen in March, after a shortfall of 897 billion yen in February.

By region, exports to the United States grew 9.4% in the year to March, slowing from the 14.9% seen in the previous month.

Exports to China, Japan's largest trading partner, fell 7.7% year-on-year in March, a fourth straight month of declines, the trade data showed.

($1 = 134.7400 yen)

Japan March export growth slows, annual trade deficit widens to record

Japan's export growth slowed in March, dragged down by a drop in China-bound shipments of cars and steel in a slide that underscores concern about slackening global demand amid higher interest rates and Western banking-sector jitters.

www.reuters.com

 

[beijingwalker]

Japan's export growth hits two-year low on weak China demand​

By Tetsushi Kajimoto
May 18, 202310:13 AM GMT+8

• April exports grow at weakest pace since 2021
• Slowing global demand takes toll on exports
• Declines in imports may help improve trade deficit

TOKYO, May 18 (Reuters) - Japan's export growth hit its weakest pace in more than two years in April as China-bound shipments slumped amid lingering worries about faltering global economic demand.

Exports rose 2.6% in April from a year earlier, Ministry of Finance data showed on Thursday, slower than a 3.0% increase expected by economists in a Reuters poll and a 4.3% rise in March. It also marked the weakest gain since February 2021 when exports declined 4.5%.

The world's No. 3 economy emerged from recession in the first quarter, helped by a boost in consumer spending and tourism following the end of COVID-19 pandemic restrictions, but weak exports are weighing on factory activity and hampering a broader recovery.

Exports have expanded every month since the February 2021 decline, helped in part by a weaker yen that makes Japanese products competitive.

However, gross domestic product data for January-March on Wednesday showed exports slumped 4.2% in the period, the first quarterly decline in 18 months.

"Weakening exports will put a drag on capital spending, which may sap domestic demand as consumption lacks strength," said Takeshi Minami, chief economist at Norinchukin Research Institute.

"The global economy will slow further in the latter half of this year, so you cannot count on either domestic or external demand, leaving Japan's economy in a soft patch."

By destination, Japanese exports to China, the country's largest trading partner, dropped 2.9% in April year-on-year, dragged by declines in cars, car parts and steel shipments. It followed a 7.7% decline in March and marked a fifth straight month of falls. Likewise, Japan's shipments to Asia fell 6.3% year-on-year in April, down for a fourth straight month.

U.S.- and European Union-bound shipments grew 10.5% and 11.7% year-on-year in April, respectively, led by a rebound in cars and car parts as supply constraints eased.

Imports fell 2.3% in April, much bigger than the median estimate for a 0.3% decrease and the first annual decline in 27 months, as the base effects of surging energy costs and a weakening yen ran their course.

The trade balance came to a deficit of 432.4 billion yen ($3.20 billion), narrower than the median estimate for a 613.8 billion yen shortfall.

Japan's export growth hits two-year low on weak China demand

Japan's export growth hit its weakest pace in more than two years in April as China-bound shipments slumped amid lingering worries about faltering global economic demand.

www.reuters.com

 

[Bengal71]

Just wait until they lose their auto industry. Another 3 to 5 years, Japanese auto giants will start to become bankrupt.

 

[beijingwalker]

Just wait until they lose their auto industry. Another 3 to 5 years, Japanese auto giants will start to become bankrupt.

Auto industrty is the last remaining pillar of Japan's economy, for both trade and mass employment

 

[Bengal71]

Auto industrty is the last remaining pillar of Japan's economy, for both trade and mass employment

Yes, losing the auto industry will be the last nail in the coffin of Japanese economy. It's heading in that direction at the moment. Their defence spending and belligerent act will be in dire straits without a strong economy.

 

[S10]

I am wondering where will they get money to double their defence spending.

Japan defence: China threat prompts plan to double military spending - BBC News

Pornography export

 

[Song Hong]

Amateur economist Song Hong has spoken: Japan is dead meat.

Japan can only bail out by allow Chinese sex tourist to fk their women -- aka Thailand style.