TOKYO, Japan / ConSynSer / – According to preliminary data from the Ministry of Finance, Japan experienced a trade shortfall of 536.6 billion yen in September, driven by faster growth in imports compared to exports. Exports increased 16.7% year-on-year to 10.9723 trillion yen, while imports rose 18.9% to 11.5088 trillion yen during the same period. The deficit was approximately $3.4 billion, as reported by Xinhua News Agency.
Exports marked their 13th consecutive month of growth, supported by robust demand for semiconductors and chip-making equipment, with Xinhua also highlighting increased interest in products related to artificial intelligence. This data indicates Japan’s fifth consecutive month of trade deficits, although the September shortfall was smaller than the 1.11 trillion yen recorded in August. The pace of import growth slowed from a 28.0% increase in August, partly due to a decline in crude oil imports.
Rising energy costs have significantly impacted Japan’s trade balance this year. The country, which is resource-scarce, relies heavily on oil imports and shipping routes through the Strait of Hormuz. Disruptions in the Middle East have led importers to pay higher prices to secure supplies via alternative routes. Brent crude oil has increased from around $70 a barrel in February to approximately $110 a barrel.
First-half deficit nearly doubles
During the first half of the fiscal year, from April to September, Japan recorded a trade deficit of 2.81 trillion yen, roughly $17.8 billion, nearly twice the amount from the previous year. Exports for this period grew 18.4% to 63.5 trillion yen, while imports increased 20.4% to 66.3 trillion yen, both reaching record highs for Japan.
These figures reflect strong global demand for Japanese technology products alongside rising import costs. Semiconductor-related exports have supported trade figures throughout much of 2026. Japan had also posted record trade values in July, as imports outpaced exports. Elevated fuel prices are impacting various sectors, including plastics and shipping industries.
Yen weakness and rate hikes influence outlook
A depreciating yen has increased import costs, with the US dollar recently trading near 150 yen. The Bank of Japan has been gradually raising interest rates, partly to support the yen, and last month increased its benchmark rate to 1.25% from 1.0%, the highest in 31 years. The central bank’s policy board is scheduled to meet again next week.
The Bank aims for inflation around 2%. Analysts believe that oil prices are unlikely to decline soon, which may continue to exert upward pressure on Japan’s import expenses in the coming months. Future monthly trade data will reveal whether export growth can persist in offsetting higher energy costs. The Ministry of Finance releases preliminary trade figures each month.