TOKYO — Japan racked up a trade deficit in October for a fourth straight month as a weak yen and the rising price of energy kept import costs high.
The trade deficit, which amounts to a nation’s imports subtracted from its exports, totaled 461 billion yen ($3 billion) in red ink last month, the Finance Ministry reported on Wednesday.
Japan’s exports in October managed to recover from a slowdown over the recent months, gaining 3.1 percent from the same month a year earlier, as shipments grew in equipment for semiconductor production.
IN THE RED Japan’s Prime Minister Shigeru Ishiba (left) and South Korea’s President Yoon Suk Yeol attend the Group of 20 Summit leaders meeting in Rio de Janeiro on Nov. 18, 2024. Japan posted a trade deficit for the fourth straight month in October totaling 461 billion yen ($3 billion) due to a weak yen and rising cost of energy. AP PHOTO
But imports, which grew 0.4 percent from the previous year, were still bigger than exports.
A major uncertainty over trade is looming because of the reelection of Donald Trump as US president. Worries are great about portending higher tariffs.
Exports are a chief engine of growth for Japan, the home of Toyota Motor Corp., although such manufacturers have moved production and investment abroad.
New Prime Minister Shigeru Ishiba has been busy meeting the leaders of Asian nations, as well as Europe and South America, to forge economic and trade relations, as well as security ties. Ishiba, who has yet to meet Trump, was recently in Brazil for the Group of 20 summit.
A weakening currency, which tends to accompany trailing growth, is another worry for Japan. The US dollar has been trading at about 155 Japanese yen recently, up from 140-yen levels a year ago.
Inflation and rising energy prices are pushing up import costs, while slowing global demand dampens exports.
But the recent fall in overseas demand is believed to be partly due to temporary disruptions like a typhoon, while the drop in exports is related to auto production disruptions in Japan.
By region, exports rose to the rest of Asia, including Singapore and Hong Kong, while slipping slightly to the US.
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