Japan's deficit reaches 8-year high as energy imports soar
Japan has reported its trade deficit rose to an eight-year high in January as the cost of energy imports soared
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Japan racked up a 2.2 trillion yen ($19 billion) trade deficit last month, an eight-year high, as the cost of energy imports soared, the government said Thursday.
The Finance Ministry said exports edged up 9.6% in January from the same month the previous year. Imports jumped 39.6%, resulting in the sixth straight month of trade deficits, it said.
The amount is the biggest since January 2014, when the trade deficit totaled nearly 2.8 trillion yen.
Koya Miyamae, a senior economist at SMBC Nikko Securities, said the trade deficit tends to rise in January because of the New Year’s holidays, which pushes exports down.
“But even taking that into consideration, the deficit is huge,” he said.
Japan imports almost all its oil and gas. Prices have soared to multi-year highs recently, adding to global concerns about inflation. Tensions in Ukraine amid worries about a Russian invasion have pushed prices still higher.
Meanwhile, Japan's currency, the yen, has weakened against the U.S. dollar as the Federal Reserve prepares to raise interest rates to counter inflation. Higher rates tend to push the dollar higher against other currencies because they create more demand for dollar-denominated investments.
Exports have not risen as quickly as imports as manufacturing of electronics and autos has been slowed by shortages of computer chips resulting from pandemic-related disruptions in some countries.
___
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama