Japan Balance of Trade

Japan’s trade deficit widened significantly to JPY 536.6 billion in September 2026 from JPY 277.7 billion in the same month a year earlier, exceeding market expectations of a JPY 181.0 billion shortfall and marking a fifth consecutive monthly deficit. The deterioration came as imports outpaced export growth. Imports rose 18.9% year-on-year to JPY 11,508.8 billion, easing from August’s 28.0% surge and below forecasts of 19.6%, marking the slowest growth since May. Still, crude oil imports jumped 51.1%, partly reflecting Japan’s efforts to diversify energy procurement amid tensions surrounding the Strait of Hormuz. Meanwhile, exports rose 16.7% to JPY 10,972.2 billion, less than estimates of 20.1% and pointing to the slowest growth in five months, although shipments extended their expansion streak to 13 months. Resilient demand for AI-related semiconductors continued to support exports, while supply-chain disruptions linked to the Middle East conflict posed headwinds.

Japan’s trade deficit widened significantly to JPY 1,105.6 billion in August 2026 from JPY 294.1 billion a year earlier, slightly below market expectations of JPY 1,052.6 billion. It marked the fourth consecutive month of deficit and the largest since January, as imports grew faster than exports. Imports soared 28.0% year-on-year to JPY 11,153.9 billion, following a 27.9% rise in July and exceeding forecasts of 26.3%, marking the strongest growth since November 2022. The increase reflected solid domestic demand, partly supported by the government’s late-2025 stimulus. Crude oil imports jumped 58.7% as Japan diversified energy purchases away from the Strait of Hormuz amid ongoing tensions. Exports rose 19.3% to JPY 10,048.4 billion, topping expectations of 18.2%. Outbound shipments increased for a 12th straight month, supported by robust demand for AI-related chips, despite supply-chain risks stemming from the Middle East conflict.

Japan's trade deficit widened sharply to JPY 634.5 billion in July 2026 from JPY 156.3 billion in the same month a year earlier, but was below market forecasts of JPY 680 billion. It was the third straight month of deficit and the largest since January as imports grew faster than exports. Imports surged 27.8% yoy to a new record JPY 12,146.3 billion, accelerating from June's 25.4% rise, beating estimates of 26.5%, and posting the strongest growth since November 2022. The sharp rise reflected solid domestic demand, boosted by the government's late-2025 stimulus. Crude oil imports jumped 87.8% as Japan diversified energy buying away from the Strait of Hormuz amid ongoing tensions. Exports rose 23.2% to a fresh high of JPY 11,511.8 billion, the strongest gain since October 2022, topping consensus of 19.9%. Outbound shipments grew for the 11th month, lifted by a weaker yen and robust demand for AI-related chips, despite risks from supply chain disruptions due to the Middle East conflict.