Japan saw record-high exports last year, with its annual trade deficit declining by 44 per cent compared to the previous year, the Finance Ministry reported on Thursday.
The trade deficit, which measures the value of exports minus imports, totalled 5.3 trillion yen ($34 billion), according to government data, as imports surged due to rising energy costs and global inflation.
Exports from the world's third-largest economy totalled 107.9 trillion yen ($691 billion), surpassing the 100 trillion yen mark for the second consecutive year and setting the highest value on record for comparable data, which dates back to 1979, the ministry said.
Some companies may have accelerated their exports in anticipation of potential tariffs imposed by US President Donald Trump.
Trump has stated he expects to impose 25 per cent tariffs on Canada and Mexico starting 1 February. During his campaign, he threatened to impose tariffs on imports from China, although details on that remain unclear.
For the month of December, exports rose a greater-than-expected 2.8 per cent year-on-year, while imports increased by 1.8 per cent. Exports grew to Asian and European nations, while dipping slightly to the US. Imports grew most from India, Hong Kong, and Iran.
Japanese demand was particularly strong for vehicles, semiconductors, and other machinery.
The weakening yen, another recent trend, has the effect of inflating the value of imports. The US dollar has been hovering around 150 yen, sometimes surpassing 160 yen, over the past year, compared to 140 yen levels a year ago.
Japan has recorded a trade deficit for four consecutive years, but last year's deficit was considerably smaller than the 9.5 trillion yen deficit for 2023.
Follow us
