TOKYO, Japan / ConSynSer / – According to preliminary figures from the Ministry of Finance, Japan’s trade balance showed a deficit of 536.6 billion yen in September, driven by faster growth in imports compared to exports. During this period, exports increased by 16.7% year-on-year to 10.9723 trillion yen, while imports surged 18.9% to 11.5088 trillion yen. The resulting deficit was approximately $3.4 billion, as reported by Xinhua News Agency.
The country marked its 13th consecutive month of rising exports, supported by strong demand for semiconductors and equipment used in chip manufacturing. Xinhua also highlighted increased demand for goods related to artificial intelligence. This data signals Japan’s fifth consecutive month of trade deficits, although the shortfall in September was smaller than the 1.11 trillion yen deficit recorded in August. Import growth slowed from a 28.0% increase in August, partly due to a decline in crude oil arrivals.
Year-to-date, energy costs have negatively impacted Japan’s trade balance. As a resource-scarce nation, Japan relies heavily on oil imports, primarily transported via routes through the Strait of Hormuz. Disruptions in the Middle East have led importers to pay higher prices to secure supplies through alternative routes. Brent crude has increased from around $70 a barrel in February to roughly $110 a barrel.
First-half deficit almost doubles
From April to September, Japan recorded a trade deficit of 2.81 trillion yen, approximately $17.8 billion, nearly doubling the amount from the same period last year. During this timeframe, exports rose 18.4% to 63.5 trillion yen, while imports increased 20.4% to 66.3 trillion yen. Both totals reached record highs for Japan.
These figures reflect robust international demand for Japanese technology alongside rising import expenses. Semiconductor-related exports have supported trade throughout much of 2026, with Japan previously posting record trade values in July as import growth outpaced exports. Higher fuel prices continue to influence various sectors, including plastic goods and shipping costs.
Weak yen and interest rate hikes influence future prospects
In recent weeks, a depreciated yen has increased import costs, with the US dollar trading around 150 yen. The Bank of Japan has been incrementally raising interest rates, partly to bolster the currency. Last month, it increased its benchmark rate to 1.25% from 1.0%, marking the highest level in 31 years. The central bank’s policy board is scheduled to meet again next week.
Aiming for an inflation rate of approximately 2%, analysts believe that oil prices are unlikely to decline soon, potentially sustaining upward pressure on Japan’s import expenses in the upcoming months. Future monthly trade data will reveal whether export growth can continue to offset rising energy costs. The Ministry of Finance releases preliminary trade figures each month.