Japan’s trade gap widens despite 13-month export growth streak

• Japan’s trade deficit widened to JPY 536.6B in September 2026 from JPY 277.7B a year earlier, exceeding market expectations of a JPY 181B shortfall as imports outpaced exports. The country recorded its fifth consecutive monthly trade deficit.
• Imports rose 18.9% Y/Y to JPY 11,508.8B, slowing from August’s 28% increase and below forecasts for 19.6% growth. The increase marked the slowest import growth since May, although crude oil imports surged 51.1% amid Japan’s efforts to diversify energy supplies amid tensions surrounding the Strait of Hormuz.
• Exports increased 16.7% Y/Y to JPY 10,972.2B, below expectations for 20.1% growth and slowing from August’s 19.3% increase. Shipments nevertheless extended their growth streak to 13 consecutive months, supported by resilient global demand for artificial intelligence-related semiconductors and related equipment.
• Exports to the U.S. rose 22.9% Y/Y in September, while shipments to China increased 8.6%, according to Ministry of Finance data.

Recommended For You

Create Your Free Account to Keep Reading

Get the confidence to navigate an uncertain market with free breaking news and stock alerts.