Japan recorded a trade deficit for the third consecutive year ending in March, amounting to 5.89 trillion yen ($38 billion), Reuters reported on Wednesday, citing data released by the Finance Ministry.
Rising energy costs and a weaker yen contributed to the deficit, though these factors were partially offset by strong performances in specific export sectors.
Notably, exports to China bounced back after a brief dip, growing 12 per cent year-on-year.
According to Robert Carnell, regional head of research for Asia-Pacific at ING Economics, robust technology-related exports are a key driver of this growth.
The weak yen played a double-edged role. While it inflated the cost of imports, it also made Japanese exports more competitive internationally, boosting their value when measured in yen.
The US dollar currently sits above 150 yen, significantly higher than the l130-yen mark seen just one year ago.
March’s trade data offered a brighter picture, with a surplus of 366.5 billion yen ($2.4 billion).
This can be attributed to a seven per cent year-on-year export increase paired with a nearly five per cent decline in imports. Notably, exports to the US surged by over eight per cent in March.
Japan’s trade profile continues to be defined by food imports and exports of automobiles, auto parts, and electrical machinery. Additionally, the booming inbound tourism sector contributes to the export figures.
