TOKYO, Japan / ConSynSer / – Japan recorded a trade deficit of 536.6 billion yen in September as imports grew faster than exports, preliminary data from the Ministry of Finance showed. Exports rose 16.7% from a year earlier to 10.9723 trillion yen. Imports climbed 18.9% to 11.5088 trillion yen over the same period. The deficit was equal to about $3.4 billion, according to Xinhua News Agency.
Exports increased for the 13th consecutive month, supported by strong demand for semiconductors and chip-making equipment. Xinhua also pointed to demand for products linked to artificial intelligence. The data marked Japan’s fifth straight month of trade deficits. However, the September shortfall narrowed from 1.11 trillion yen in August. Import growth slowed from a 28.0% rise in August, partly due to a decline in crude oil arrivals.
Higher energy costs have weighed on Japan’s trade balance this year. Resource-poor Japan imports almost all of its oil and has relied on shipping routes through the Strait of Hormuz. Disruption in the Middle East has forced importers to pay more to secure supplies through other routes. Brent crude has risen from about $70 a barrel in February to around $110 a barrel.
First-half deficit nearly doubles
For the first half of the fiscal year, from April to September, Japan posted a trade deficit of 2.81 trillion yen, or about $17.8 billion. That was nearly double the figure from a year earlier. Exports in the period grew 18.4% to 63.5 trillion yen. Imports rose 20.4% to 66.3 trillion yen, and both totals were record highs for Japan.
The figures show strong overseas demand for Japanese technology products alongside rising import bills. Semiconductor-related goods have supported exports through much of 2026. Japan had posted record trade values in July as imports outpaced exports. Higher fuel prices also affect a wide range of sectors, including plastic goods and shipping costs.
Weak yen and rate rises shape the outlook
A weaker yen has added to the cost of imports, with the US dollar trading around 150 yen in recent weeks. The Bank of Japan has been gradually raising interest rates, partly to support the currency. Last month, it raised its benchmark rate to 1.25% from 1.0%, the highest level in 31 years. The central bank’s policy board meets again next week.
The bank targets inflation of about 2%. Analysts say oil prices are unlikely to ease soon, which could keep pressure on Japan’s import costs in the coming months. Further monthly trade figures will show whether export growth can continue to offset higher energy bills. The Ministry of Finance publishes preliminary trade data each month.