Japan posted a trade surplus of 62.1 billion yen (about $417 million) in December 2023, a figure confirmed by the Japanese government on a Wednesday release. This positive balance stands in contrast to November’s deficit of 776.9 billion yen, according to data published by Japan’s Ministry of Finance.
For December, exports rose 9.8 percent year over year to 9.64 trillion yen, while imports declined by 6.8 percent to 9.58 trillion yen, illustrating a shift that contributed to the month’s favorable balance.
Regionally, Japan ran a deficit of 255,687 million yen with China, its largest trading partner. This deficit marked a 36.7 percent improvement from the same month a year earlier. In contrast, Japan achieved a substantial surplus with the United States, the world’s largest economy and second-largest trading partner, totaling 1.06 trillion yen, up 66.8 percent from the prior year. The European Union, ranked as Japan’s third trading partner, recorded a surplus of 18.83 billion yen.
Japan also narrowed its trade deficit with Brazil by 13.5 percent to 96.208 billion yen, while the negative balance with Chile was reduced by 13 percent to 45.799 billion yen. On the positive side, Japan reported a trade surplus with Mexico amounting to 78.538 billion yen, though this figure was 5.7 percent lower than in November of the previous year.
For analysts and policy makers in Canada and the United States, these December 2023 results offer relevant insights into regional demand, currency impacts, and supply chain dynamics. A stronger export performance in the month contributed to a tighter overall balance, even as domestic demand and import orders shifted in line with evolving global trade patterns. The data point to continued resilience in Japan’s external sector, driven by sustained demand from major trading partners and selective gains in key categories such as machinery, vehicles, and electronic components, alongside flat or softer import requirements in certain sectors.
In summary, December 2023 closed with a positive trade position for Japan, reflecting a combination of rising exports and controlled import growth. The ministry’s monthly release highlights how Japan’s trade relationships with the United States, the European Union, China, and other partners shaped the overall result, with notable strength coming from the U.S. market and ongoing diversification across regional partners. This trend is being watched closely by observers in North America and beyond, as it informs expectations for future trade policy, currency movements, and the global supply chain landscape.