Key facts
- Japan's trade deficit for April-September was $17.8 billion, nearly double the previous year.
- The value of imports rose 20.4% while exports increased 18.4% in the six-month period.
- Petroleum import volumes fell 21.2% but their value surged 26.3%.
- LNG import volumes decreased 8.4% but their value rose 13.5%.
Japan's trade deficit nearly doubled to $17.8 billion in the six months through September, as higher energy import costs stemming from the Middle East crisis significantly impacted the resource-poor G7 economy. The value of Japan's exports rose 18.4% while imports jumped 20.4% during the period. Despite a 21.2% drop in petroleum import volumes, their value surged 26.3%. Similarly, LNG import volumes fell 8.4%, but their value increased by 13.5%, reflecting elevated global oil and LNG prices. Japan's oil import bill reached record highs due to the closure of the Strait of Hormuz, increased crude prices, and soaring freight and insurance costs. The country has sought alternative oil sources and released crude from strategic reserves as part of an IEA-coordinated effort. The government also approved measures to diversify oil supplies and compensate importers for higher shipping costs.