TOKYO, Japan / ConSynSer / – Preliminary figures from the Ministry of Finance indicate that Japan experienced a trade shortfall 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.
Exports marked their 13th straight month of growth, fueled by robust demand for semiconductors and chip manufacturing equipment. Xinhua also highlighted increased interest in products related to artificial intelligence. This data points to Japan’s fifth consecutive month of trade deficits, although the shortfall in September was less severe than the 1.11 trillion yen deficit recorded in August. The pace of import growth decelerated from a 28.0% increase in August, partly due to a decline in crude oil imports.
Rising energy prices have significantly impacted Japan’s trade balance throughout the year. As a resource-scarce nation, Japan relies heavily on oil imports shipped through routes such as the Strait of Hormuz. Recent disruptions in the Middle East have led importers to pay higher costs to secure supplies via alternative routes. Brent crude oil prices have climbed from roughly $70 per barrel in February to about $110 a barrel.
First-half deficit nearly doubles compared to last year
Between April and September, Japan recorded a trade deficit of 2.81 trillion yen, roughly $17.8 billion, nearly twice the amount from the same period in the previous year. During this timeframe, exports increased by 18.4% to 63.5 trillion yen, while imports grew by 20.4% to 66.3 trillion yen, both reaching record highs for Japan.
The data underscores strong external demand for Japanese technological goods alongside rising import expenses. Semiconductor-related products have supported export growth throughout much of 2026. In July, Japan posted record trade figures as imports outstripped exports. Elevated fuel prices are also impacting various sectors, including plastics and shipping costs.
Currency fluctuations and rate hikes influence future trade prospects
The weakening yen has increased import costs, with the US dollar trading around 150 yen in recent weeks. To support the currency, the Bank of Japan has been gradually raising interest rates. Last month, it increased its benchmark rate to 1.25% from 1.0%, reaching the highest level in 31 years. The central bank’s policy board is scheduled to meet again next week.
The Bank aims for inflation around 2%. Analysts suggest that oil prices are unlikely to decline soon, which could keep upward pressure on Japan’s import costs in the months ahead. Upcoming monthly trade data will reveal whether export growth can continue to compensate for rising energy expenses. The Ministry of Finance releases preliminary trade figures each month.