Japan records a trade surplus of 62,442 million yen, about 416.9 million dollars, in September. This positive balance stands in contrast to an August deficit of 937.802 million yen and a much larger shortfall of 2.1 trillion yen in September 2022. The figures come from the latest release by Japan’s Ministry of Finance, reflecting a country navigating shifting global demand and currency conditions.
Japan’s exports rose by 4.3 percent year over year, reaching 9.2 trillion yen in September, while imports fell by 16.3 percent, totaling 9.1 trillion yen. The mixed picture highlights how external demand and domestic purchasing power influence trade dynamics, with exporters benefiting from resilient international demand in some sectors even as import costs ease in others.
Country-wise, Japan posted a 570,957 million yen deficit with China, its largest trading partner, marking a 1.3 percent year-on-year improvement. In contrast, the United States—the world’s leading economy and second major trading partner for Japan—saw a sizable surplus of 955,073 million yen, up 58.1 percent from a year earlier, underscoring strong demand for Japanese products in the U.S. market.
Trade with the European Union, Japan’s third-largest partner, showed a deficit of 17,921 million yen, a deficit that fell sharply, by 90.3 percent, from September 2022. Meanwhile, the deficit with Brazil widened slightly to 89,407 million yen, an increase of 0.5 percent. The balance with Chile also turned more negative, rising 23.1 percent to 62,539 million yen, reflecting ongoing shifts in regional demand and supply chains. On the positive side, Japan achieved a surplus with Mexico, totaling 110,181 million yen, up 37.7 percent from the previous year, illustrating diversified regional demand for Japanese goods.
The Ministry of Finance also published its trade balance report covering the first half of Japan’s fiscal year, from April to September. During this period, Japan recorded a trade deficit that fell by 75.1 percent to 2.7 trillion yen when compared with the same period in 2022. This improvement suggests adjustments in import patterns and a moderation in commodity prices that helped shrink the annual deficit even as global uncertainties persisted.
Several factors explain the observed trends. A notable decline in imports during the April-to-September window contributed to the narrowing deficit, after a large surge in purchases during the COVID-19 period and amid fluctuations in the yen. The currency’s depreciation in recent years has historically increased import costs, but shifts in exchange rates and strategic inventory management in manufacturing sectors helped reduce the overall import bill in the six-month span. These dynamics underscore how Japan’s finances remain sensitive to global price movements and exchange-rate volatility, especially for energy and raw materials that heavily influence import costs.
Looking at the period from April through September 2023, Japan’s imports totalled 52.96 trillion yen, while exports edged up 1.4 percent to 50.24 trillion yen. The nuanced picture—export growth in some markets offsetting costs elsewhere—highlights the complex interaction between domestic production, international demand, and currency movements. For policymakers and business leaders in Canada and the United States observing Japan’s trade performance, these developments offer insights into supply chain resilience, competitive positioning, and potential implications for regional trade ties across the Asia-Pacific and beyond.