Japan’s Trade Deficit More Than Halves in 1st Half

Tokyo, July 22 (Jiji Press)–Japan’s customs-cleared trade deficit more than halved in the first half of this year as the country’s oil imports from the Middle East decreased because of the effective closure of the Strait of Hormuz, the Finance Ministry said Wednesday. The deficit dropped 57 pct from a year before to 1,014.4 billion yen, the red ink for a 10th consecutive half-year period. Exports jumped 13.7 pct to 60,660.6 billion yen, the highest figure since comparable data became available in 1979. Exports of semiconductors and other electronic parts to China grew 64.4 pct, while automobile exports to the European Union soared 44.9 pct, led by electric vehicles. Imports expanded 10.7 pct to 61,675 billion yen, the second-highest level on record. Crude oil imports from the Middle East fell 20.5 pct, and imports of oil products, including naphtha, from the region plunged 52.6 pct. Both imports and exports were boosted by a weaker yen, with the average rate of the dollar against the yen standing at 157.75 yen in the first half, up 5.5 pct from a year before. In trade with the United States, Japan’s surplus declined 23.4 pct to 3,150.6 billion yen thanks partly to higher crude oil imports. With mainland China, Japan ran a trade deficit of 4,643.6 billion yen. In June alone, Japan posted a trade deficit of 406.9 billion yen, marking the second consecutive monthly deficit. Both exports and imports reached a record high for the month. While automobile exports to the United States rose 34.5 pct, crude oil imports from the country surged 907.4 pct. END [Copyright The Jiji Press, Ltd.]