TOKYO, Dec 16 (NNN-NHK) – Japan’s imports in Nov, surged 43.8 percent in value, due to higher crude oil costs and the yen’s weakness, logging the largest imports value since comparable data became available in Jan, 1979, government data showed today.
According to a preliminary report from the Finance Ministry, imports of goods rose to 8.32 trillion yen (72.9 billion U.S. dollars), while exports rose 20.5 percent to 7.37 trillion yen (64.6 billion dollars), resulting in a goods trade deficit of 954.8 billion yen (8.3 billion dollars), the largest trade deficit of Japan, since Jan, 2020.
The trade balance marked red ink for the fourth month in a row, with imports rising for the 10th consecutive month, on growing prices of crude oil from producers, such as the United Arab Emirates.
Exports also logged the ninth consecutive monthly increase, with rising iron and steel product demand from South Korea, and semiconductor-making equipment from China. Japan’s car exports rose 4.1 percent, up for the first time in three months.
The Japanese yen against the U.S. dollar weakened 8.9 percent year-on-year, in the reporting month, also inflating import prices for the country.
Japanese automakers have been forced to cut output since around summer, following parts shortages, caused by factory shutdowns in Southeast Asian countries, due to the COVID-19 infection surges and the worldwide semiconductor crunch.
Masato Koike, an economist at the Dai-ichi Life Research Institute, said, “Since demand was solid, sluggish (auto) exports were due to supply-side issues. Once such situation improves, pickup in exports can be expected.”
Koike said, the trade balance might return to a surplus, if energy costs become stable, adding that, due to the spread of the Omicron variant, demand for crude oil might be slow.
All figures were compiled on a customs-cleared basis.– NNN-NHK
