Japan reports record exports and imports amid widening trade deficit

Japan's trade statistics for July 2026 show both exports and imports reaching record highs since January 1979. Exports rose 23.2% year-on-year to 11.5 trillion yen, driven largely by automobiles, semiconductors, and electronic components.

Despite the record export volume, Japan recorded a trade deficit of 634.5 billion yen, marking the third consecutive month of deficit. This was caused by imports growing at a faster rate (27.8%) than exports. The surge in imports was primarily fueled by crude oil, which saw an 87.8% increase, as well as electronic components and non-ferrous metals.

A significant factor in these figures is the weakening yen; the exchange rate moved from 145.56 yen per dollar in July 2025 to 161.83 yen in July 2026, an 11.2% depreciation. While the monetary value of trade has hit records, the actual volume of goods (quantity index) grew at a much more modest pace.