TOKYO, Japan / ConSynSer / – In September, Japan experienced a 13th consecutive month of rising exports, although the trade deficit widened to 536.6 billion yen due to faster-growing imports. According to preliminary data from the Ministry of Finance, exports increased 16.7% year on year to 10.9723 trillion yen, while imports surged 18.9% to 11.5088 trillion yen. The Xinhua News Agency estimated the deficit at approximately $3.4 billion.
The export growth was primarily driven by robust demand for semiconductors and chip manufacturing equipment. Additionally, products associated with artificial intelligence contributed to the shipment increase, according to Xinhua. Japan has now recorded trade deficits for five straight months, though the gap has shrunk significantly 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. Since Japan imports nearly all of its oil and relies on access to the Strait of Hormuz, ongoing conflicts in the Middle East have disrupted supply routes. Consequently, importers are paying higher prices for shipments via alternative routes. Brent crude has risen from roughly $70 per barrel in February to about $110 a barrel.
Trade values hit record highs in the first half of fiscal year
Between April and September, Japan’s trade deficit amounted to 2.81 trillion yen, approximately $17.8 billion, nearly doubling from the previous year. During this period, exports increased by 18.4% to 63.5 trillion yen, while imports rose 20.4% to 66.3 trillion yen. These figures marked historic peaks for Japan, driven by vigorous trade activity and rising energy costs.
The surge in oil prices is impacting multiple sectors, including plastics and shipping. Meanwhile, exporters continue to benefit from sustained global demand for chips and related machinery. Japan’s trade figures also hit record levels in July, when imports surpassed exports. The current data indicate a year of strong, yet uneven, trade performance.
Focus shifts to Bank of Japan’s interest rate trajectory
A weakening yen has increased the cost of imported goods, with the US dollar trading at around 150 yen. The Bank of Japan has been gradually raising interest rates, partly to support the currency, raising its benchmark rate to 1.25% from 1.0% last month — a 31-year high. Its policy board is scheduled to meet again next week.
With an inflation target of about 2%, analysts believe that oil prices are unlikely to decrease soon, implying that import expenses will remain high. The Ministry of Finance’s upcoming monthly report will reveal whether export growth driven by chips can continue to offset rising energy costs. Japan’s trade results continue to be closely linked to developments in global energy markets.