Japan’s trade deficit in first half of 2022 hits largest since 1979

International Business News  –  On July 21, the Japanese Ministry of Finance released a preliminary report on trade statistics for the first half of 2022 (January to June), showing that the trade balance (exports minus imports) was a deficit of 7.9241 trillion yen. After 1979, when comparable data were available, the deficit reached a record high as a half-year data. Due to factors such as higher resource prices and the depreciation of the yen, the import value increased by 37.9% year-on-year to 53.8619 trillion yen.

Exports rose 15.2% to 45.9378 trillion yen, driven by growth in steel and electronic components. In terms of imports, crude oil including crude oil and liquefied natural gas (LNG) have each increased by about 2 times, and coal has increased by more than 3 times. Both imports and exports hit a record high in the first half of the year. The increase in imports brought about by higher resource prices increased and the deficit widened.

The trade balance in June was a deficit of 1.3838 trillion yen. There has been a deficit for 11 consecutive months, and the deficit hit a record high in June. The depreciation of the yen also had an impact, with both imports and exports hitting record highs in a single month.