TOKYO, Japan / ConSynSer / – According to preliminary data from the Ministry of Finance, Japan experienced a trade shortfall of 536.6 billion yen in September as import growth outpaced exports. During the same period, exports increased by 16.7% from the previous year to reach 10.9723 trillion yen, while imports rose by 18.9% to 11.5088 trillion yen. The deficit equates to approximately $3.4 billion, as reported by Xinhua News Agency.
Exports have now expanded for 13 straight months, driven by robust demand for semiconductors and equipment used in chip manufacturing. Xinhua also highlighted increased interest in products related to artificial intelligence. This data marks Japan’s fifth consecutive month of trade deficits, although the September figure was smaller than August’s shortfall of 1.11 trillion yen. Import growth slowed from August’s 28.0% increase, partly due to a decrease in crude oil arrivals.
Rising energy prices have contributed to Japan’s trade imbalance this year. As a resource-scarce country, Japan relies heavily on oil imports shipped through routes such as the Strait of Hormuz. Disruptions in the Middle East have led importers to pay higher costs to secure supplies via alternative routes. Brent crude has increased from about $70 a barrel in February to roughly $110 a barrel.
First-half trade deficit nearly doubles
From April to September, Japan’s trade deficit totaled 2.81 trillion yen, approximately $17.8 billion, nearly twice the amount recorded a year earlier. During this period, exports grew by 18.4% to 63.5 trillion yen, while imports increased by 20.4% to 66.3 trillion yen. Both figures set new records for Japan.
The data reflects strong international demand for Japanese technology products amid rising import costs. Semiconductor-related goods have supported exports through much of 2026. Japan previously posted record trade values in July, as imports exceeded exports. Elevated fuel prices also impact various sectors, including plastics and shipping expenses.
Weak yen and rate hikes influence future prospects
The depreciation of the yen has increased import costs, with the US dollar trading near 150 yen in recent weeks. The Bank of Japan has been gradually raising interest rates, partly to support the currency. Last month, it increased its benchmark rate to 1.25% from 1.0%, the highest in 31 years. The central bank’s policy board is scheduled to meet again next week.
Aiming for an inflation rate of about 2%, analysts believe that oil prices are unlikely to decline soon, which could sustain upward pressure on Japan’s import expenses in the coming months. Ongoing monthly trade data will indicate whether export growth can continue to offset rising energy costs. The Ministry of Finance releases preliminary trade statistics each month.