Posted on 01/19/2023 6:26:45 AM PST by FarCenter
TOKYO -- Japan on Thursday reported a record annual trade deficit of 19.97 trillion yen ($155 billion) for 2022, after a combination of high commodity prices and a weak yen increased import costs.
According to preliminary data released by the Finance Ministry, Japan's exports grew 18% to 98.18 trillion yen last year, while imports increased 39% to 118.15 trillion yen.
Both exports and imports reached the highest levels on record. But the annual deficit, the second in a row, far surpassed the previous peak of 12.8 trillion yen in 2014.
Resource-poor Japan relies heavily on fuel imports. The value of imported crude oil rose 91.5% in 2022, while liquified natural gas jumped 97.5%, as energy prices increased globally after Russia invaded Ukraine.
In addition, the weak yen -- which touched a 32-year low against the dollar in October as the Bank of Japan kept its ultraloose monetary policy amid global rate hikes -- added to import costs for food, raw materials and other goods. The yen's exchange rate averaged 130.77 per dollar last year, compared to 109.41 the previous year, according to the statistics.
"Imports increased 39.2% due to an increase in crude oil, coal and other products," the ministry said in a statement.
The export growth reflects the recovery from the COVID-19 pandemic. Shipments of automobiles increased 21.4% on the year, while steel exports rose 24.2%.
Exports to China grew 5.7%, slower than shipments to the Association of Southeast Asian Nations (up 24.7%), the U.S. (up 23.1%) and European Union (up 22.1%) due to Beijing's prolonged "zero-COVID" policy.
Russia-bound exports dropped 29.8% due to Japan's economic sanctions against the country, with shipments of semiconductors and other electronic parts falling 66.5%.
(Excerpt) Read more at asia.nikkei.com ...
Japan is who we are depending on as a great ally in East Asia.
But as someone once said about a corporate merger between two unprofitable corporations, "Tying together two bricks won't make them float."
It’s time go conquering again ?
High prices on oil, added with their currency losing value and having to purchase oil priced into usd. Double double whammy.
On the one hand, the article says Japan is getting clobbered by fuel costs. But later on, the story implies global "shipments" of automobiles are going up 21%.
But if you look at statistics reported by Toyota, the leading auto manufacturer by far, you see that global unit shipments declined 6.1% for the first half of 2022.
And with inflation high in America, last June my wife and I sold our 4 year old (used) Nissan Sentra in Georgia for the same price we originally paid for it.
The only global vehicle sector that seems to be growing well is motorcycles. Honda reports excellent growth in motorcycles sales in nations like India and Vietnam. Yet Honda also reports a decline in its North American auto sales.
Bottom line: my guess is Nikkei is fudging on the vehicle numbers — maybe to make Japan's economy sound more robust than it is?
Regardless, having just moved to Japan in November 2022, we lucked out when the yen climbed to 150 yen to the dollar in late 2022 and is now hovering around 130 yen — a bargain compared to the 110 yen/dollar it used to be through most of 2022.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.