Korean Media: Japan Records Trade Deficit for Third Consecutive Month!

On September 21, South Korean media outlet *Herald Economic* published an article stating that Japan’s trade balance recorded a deficit for the third straight month as of July.

According to preliminary trade data released by Japan’s Ministry of Finance, the country’s trade deficit in July amounted to 63.45 billion yen. This marks the third consecutive month of deficit, with persistent regional instability in the Middle East driving up crude oil prices—a key factor contributing to the widening shortfall.

*Nikkei News* explained that while exports of semiconductors and electronic components remain robust, rising import costs—particularly for crude oil—have exacerbated the trade imbalance.

In July, Japan’s total export value reached 1.15117 trillion yen, a year-on-year increase of 23.2%.

This marks the 11th consecutive month of growth, setting another historical record.

Growth in automobile exports to the United States and increased shipments of semiconductors and electronic components to China were primary drivers behind the surge in export volumes.

Import values totaled 1.21462 trillion yen, up 27.8% year-on-year, continuing a six-month upward trend. This followed June’s record high, marking the second consecutive month to reach a new peak in imports.

Imports of crude oil, semiconductor and electronic components from Asia, and non-ferrous metals such as silver from South Korea all rose during the period.

Notably, crude oil imports surged by 87.8%, reaching 1.4089 trillion yen.

Due to disruptions in navigation through the Strait of Hormuz, Japan has been forced to source crude oil via alternative routes, leading to higher procurement costs.

The average price of crude oil imports, measured in yen, rose by 78.0%, while the volume of imports increased by 5.5%.

As a result of diversified supply sources, crude oil imports from the Middle East declined by 32.8% compared to the same period last year.

By contrast, imports from the United States increased 9.2 times, reaching the highest level since records began in 1979.

Original article: toutiao.com/article/1876903692551177/

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