TOKYO, Japan / ConSynSer / – Amid ongoing global economic fluctuations, Japan experienced a 13th consecutive month of rising exports in September, yet a faster increase in imports resulted in a trade shortfall of 536.6 billion yen. According to initial data from the Ministry of Finance, exports climbed 16.7% year on year to 10.9723 trillion yen, while imports grew 18.9% to 11.5088 trillion yen. Xinhua News Agency estimated the deficit at approximately $3.4 billion.
The surge in exports was driven primarily by robust demand for semiconductors and chip-manufacturing equipment. Additionally, products associated with artificial intelligence contributed to the export increase, as reported by Xinhua. September marked Japan’s fifth consecutive month of trade deficits, although the gap significantly shrank from 1.11 trillion yen in August. Import growth slowed from 28.0% in August, partly due to a decline in crude oil arrivals.
Persistent energy costs continue to exert pressure on Japan’s trade balance. The country relies heavily on oil imports and has traditionally depended on access to the Strait of Hormuz, which has been disrupted by conflicts in the Middle East. To secure shipments via alternative routes, importers have faced higher costs. Brent crude oil prices have risen from around $70 a barrel in February to about $110 a barrel.
Trade values hit record highs in the first half of the fiscal year
For the April-to-September period, Japan’s trade deficit reached 2.81 trillion yen, roughly $17.8 billion, nearly double the amount from the previous year. Over the half-year, exports increased by 18.4% to 63.5 trillion yen, while imports surged 20.4% to 66.3 trillion yen. These figures set new records for Japan, highlighting strong trade activity amid rising energy prices.
The escalation in oil prices impacts multiple sectors, including plastics and shipping. Meanwhile, exporters continue to benefit from strong global demand for chips and related equipment. Japan’s trade figures also reached records in July, during which imports outpaced exports. The current data reflect a year marked by vigorous yet uneven trade performance.
Focus shifts to the Bank of Japan’s rate trajectory
A declining yen continues to elevate the cost of imported goods, with the US dollar trading around 150 yen. The Bank of Japan has been gradually raising interest rates, partly to support the yen. Its benchmark rate rose to 1.25% from 1.0% last month, marking a 31-year high. The policy board is scheduled to meet again next week.
The central bank aims for an inflation target near 2%. Analysts suggest that oil prices are unlikely to drop soon, which could keep import costs high. The Ministry of Finance’s upcoming monthly report will reveal whether export growth driven by chips can keep pace with rising energy expenses. Japan’s trade outlook remains closely linked to developments in global energy markets.