Japan records record high exports despite trade deficit

Japan's exports reached a record high of 63.457 trillion yen during the first half of the fiscal year (April–September), marking an 18.4% increase compared to the previous year. Growth was driven by strong demand for semiconductor electronic components for China, automobiles for the United States, and semiconductor manufacturing equipment fueled by expanding AI investment.

Despite the export surge, Japan recorded a trade deficit of 2.8184 trillion yen for the same period, an expansion of the deficit compared to the previous year. This was largely due to a 20.4% increase in imports, which reached a record 66.2754 trillion yen. The rise in imports was attributed to high crude oil prices caused by instability in the Middle East, as well as a significant increase in electronic components, such as semiconductors from Taiwan.

While the trade balance shows a deficit, the overall current account remains in surplus due to positive primary income (dividends and interest).