Japan's trade deficit widens as oil costs bite, export growth slows for the first time in six months
Shipments from Japan grew 19.3% year on year in August, compared to the 18.2% expected by economists polled by Reuters.
TL;DR
- Japan's trade deficit reached 1.1 trillion yen, exceeding the 1 trillion yen mark for the first time since January.
- High oil prices significantly increased Japan's energy import bill, with petroleum imports jumping 58.7% by value.
- Petroleum imports from the U.S. saw a dramatic year-on-year increase of 1,026%.
- Japan is replacing Middle Eastern oil imports with U.S. supplies but is paying a premium for them.
- Export growth in August was 19.3% year on year, a slowdown for the first time since February.
- Shipments to mainland China and the U.S. increased by 20.6% and 24.9% respectively.
- Import growth in August was stronger than anticipated, rising by 28%.