Japan records trade deficit as surging global prices pushes imports higher
Japan racked up a 621 billion yen, or $4.3 billion, trade deficit in July, as prices of imports surged
TOKYO — Japan racked up a 621 billion yen ($4.3 billion) trade deficit in July, as prices of imports surged, according to government data released Wednesday.
Japan’s imports grew nearly 17% from a year ago to 10.2 trillion yen ($70.6 billion), while exports grew 10% to 9.6 trillion yen ($66 billion), the Finance Ministry said.
Imports grew in meat and other food, as well as iron, underlining a relatively healthy domestic economy, where consumer spending improved amid rising wages.
Exports grew to the U.S., China and Brazil, but auto exports continued to suffer amid a scandal involving falsified testing that stalled production at some manufacturers, including Japan’s top automaker Toyota Motor Corp.
Earlier, auto production was hit from parts shortages caused by production disruptions from the coronavirus pandemic.
Japan’s exports in July grew from a year ago in plastic, paper products and computer parts.
“Exports slightly missed the market consensus, but showed a robust acceleration, suggesting the economy is in recovery,” said Robert Carnell, regional head of Research Asia-Pacific at ING Economics.
“It is also encouraging to note that exports grew across all major categories. Technology exports were particularly strong.”
Although Japan recorded a trade surplus in June, the world’s fourth largest economy has consistently been in the red in trade data, logging trade deficits for six straight fiscal half-years, starting with the final half of 2021. Japan’s fiscal year runs from April to March.
July’s data showed a reversal from the perk observed in June. The weak yen works as a negative for Japan’s imports, especially
Read more on abcnews.go.com
