Japan's trade deficit in the first half of fiscal 2023 declined 75.1 percent to 2.72 trillion yen ($18 billion), as imported energy costs fell after surging amid Russia's war in Ukraine and a tumbling yen, while exports grew to a record high, Japan's government data showed Thursday.
Imports came to 52.96 trillion yen, down 12.4 percent, as the value of crude oil, liquefied natural gas, and coal all declined, according to Japan's Kyodo News Agency.
Exports stood at a record 50.24 trillion yen, up 1.4 percent, helped by robust auto shipments to the United States, the Japan's Finance Ministry said in a preliminary report.
The Israel-Hamas war has heightened tensions in the oil-producing Middle East, leaving financial markets on edge over geopolitical risks.
As most of Japan's crude oil imports come from the region, analysts say higher prices, coupled with the yen's persistent weakness, may mean bigger trade deficits for the nation in the coming months.
Japan registered a massive 10.91 trillion deficit in the April-September period of 2022, the highest since comparable data became available in 1979, underscoring the vulnerability of a nation heavily reliant on imports to meet its domestic energy needs.
The resource-scarce nation was in the red for the fifth straight year on a first-half basis, with the outlook for export growth increasingly uncertain amid weakening demand in China and aggressive monetary tightening in the United States and Europe.
Source: Qatar News Agency