Japan reports record $19bn trade deficit as energy costs soar

Tokyo, Sept. 15, (dpa/GNA) - The rising costs of energy imports combined with a weak yen have brought Japan’s trade balance deep into the red, with the country’s trade deficit in August reaching a record 2.8 trillion yen ($19 billion), the Finance Ministry said on Thursday. 

The August figures mean that the resource-poor country, despite being the world’s third largest economy, has now been in the red for 13 months in a row. 

The value of imports rose by 49.9% to 10.9 trillion yen, the highest increase since records began in 1979, due largely to rising energy prices. The country’s exports rose 22.1% in August to around 8 trillion yen. 

The Russian war in Ukraine has driven up the cost of crude oil, coal and gas everywhere. The rapid weakening of the yen against the dollar has only added to Japan’s problems by making imports more expensive, however. 

GNA