Japan Trade Deficit Narrows in July


Japan reported a trade deficit of ¥268.10 billion in July of 2015, much lower than a ¥966.54 billion gap a year earlier but missing market consensus. Yet, it is the highest trade gap in five months as export growth slowed.

In July, exports increased by 7.6 percent year-on-year to ¥6663.77 billion, following a 9.5 percent rise in June. Sales increased to all of the country's major trading partners except Russia. Outbond shipments to the US rose the most by 18.8 percent. Those to Asia, representing more than half of the country's total sales increased by 6.1 percent with shipments to China rising 4.2 percent, Hong Kong (+2.6 percent), Taiwan (+10.5 percent), South Korea (+3.1 percent), India (+32.3 percent), Vietnam (+22.8 percent) and Singapore (-2.7 percent). Exports also increased to Oceania (+20.5 percent), Western Europe ( +7.8 percent), Middle East countries (+5.4 percent), Africa (+8.9 percent and the Middle South America (+1.3 percent). In contrast, outbond shipments to Russia declined by 44.7 percent.

By commodity, value of exports increased for: foodstuff (+26.1 percent), raw materials (+2.4 percent), chemicals (+2.4 percent), manufactured goods (+2.5 percent), machinery (+8.3 percent), electrical machinery (+10.5 percent), transport equipment (+10.4 percent) and others (+11.5 percent). In contrast, exports declined for raw materials (-12.1 percent) and mineral fuels (-7.8 percent).

Imports declined by 3.2 percent year-on-year to ¥6931.82 billion after falling 2.9 percent in June. Inbound shipments decreased for raw materials (-10.4 percent) and mineral fuels (-28.9 percent with sales down for: petroleum (-24.6 percent), petroleum products (-33.4 percent), LNG (-40.7 percent) and LPG (-52.5 percent). In contrast, imports increased for: foodstuff (+1.7 percent), chemicals (+19.6 percent), manufactured goods (+1.2 percent), machinery (+9.6 percent), electrical machinery (+24.6 percent), transport equipment (+7.8 percent) and others (+9.9 percent). 

In June 2015, Japan posted a downwardly revised ¥ 70.5 billion deficit.

Japan Trade Deficit Narrows in July


Ministry of Finance l Rida Husna l rida@tradingeconomics.com
8/19/2015 8:43:34 AM