Japan's Rising Exports: Breaking Records Amid Economic Challenges

Japan experienced record-high exports last year, reducing its trade deficit by 44% to 5.3 trillion yen. This surge occurred amidst global inflation and rising energy costs. Exports reached 107.9 trillion yen, driven by strong demand for vehicles and semiconductors. A weakening yen inflated import values.

Japan marked a historic year for exports, achieving unprecedented heights in trade figures, announced the Finance Ministry on Thursday. The country saw a 44% reduction in its trade deficit, now standing at 5.3 trillion yen, an accomplishment amidst the challenges of global inflation and rising energy costs.

The world's third-largest economy reported exports totaling 107.9 trillion yen, exceeding the 100 trillion yen threshold for a second consecutive year—a record for data dating back to 1979. This growth was partly driven by anticipation of US tariffs and was strongest in the vehicle, semiconductor, and machinery sectors.

Despite the fluctuations in import costs due to a weaker yen, Japan's trade figures show a positive trend. Imports saw significant growth from India, Hong Kong, and Iran, highlighting shifts in trade dynamics with the US and Asia. These developments reflect Japan's ongoing efforts to balance its trade deficit, after recording deficits for four consecutive years.

(With inputs from agencies.)