Apr 18, 2024 (MENAFN via COMTEX) --
(MENAFN) Japan has recorded a trade deficit for the third consecutive fiscal year, primarily attributed to the escalating costs of energy and other imports coupled with the continued depreciation of the yen. According to data released by the Japanese Ministry of Finance, the trade deficit amounted to 5.89 trillion yen, equivalent to approximately 38 billion dollars, for the fiscal year ending in March.
The largest trade imbalances were observed in the Middle East, particularly with Saudi Arabia and the United Arab Emirates, along with significant deficits with Australia and Indonesia. Conversely, Japan maintained a trade surplus with the United States and certain European nations.
Annual exports to China experienced a slight decline for the first time in four years, although recent monthly figures indicate a recovery, with exports to China registering a notable 12 percent increase compared to the previous year. This resurgence in exports, particularly in technology-related sectors, has been identified as a significant factor driving Japan's trade growth by Robert Carnell, the regional head of Asia-Pacific research at ING Economics. Carnell emphasizes that exports to other regions are also witnessing an upward trend.
Carnell's analysis suggests that exports will continue to serve as the primary driver of Japanese economic expansion in the coming months. However, the recent depreciation of the Japanes Yen has exerted pressure on the trade balance. The higher cost of imports denominated in yen has amplified the value of exports when converted into the local currency, contributing to the trade deficit.
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COMTEX_451052228/2604/2024-04-18T17:50:02
