Japan logs trade deficit in March on weak yen, pricey oil

April 20, 2022
1 MIN READ
A
A+
A-

Japan’s trade deficit persisted in March as imports surged 31% thanks to soaring oil prices and a weakening yen.

The deficit of 412 billion yen ($3.2 billion) for March was lower than the previous month’s 670 billion yen but was quadruple analysts’ estimates and a reversal of the surplus of 615 billion yen recorded a year earlier for the world’s third-largest economy.

The weaker yen helps make Japanese exports more competitive overseas and fattens profits when they are converted from dollars to yen, but it also raises costs both for consumers and businesses.

Exports climbed 15% in March to 8.46 trillion yen ($65 billion) while imports were 8.9 trillion yen ($68 billion).

Costs for imports of fuels like oil, gas and coal soared just over 80% from a year earlier, while food imports jumped 22% and chemicals rose 42%. Meanwhile, Japan’s vehicle exports slipped 1.2%, with the number of vehicles shipped overseas dropping more than 14%.

Japanese automakers and other manufacturers are struggling with production cuts due to pandemic-related disruptions in supplies of all-important computer chips and other components.