Japan’s exports hit a new high in 2024, with a trade deficit for four consecutive years

On January 23, the 2024 trade statistics released by the Japanese Ministry of Finance showed that the trade balance (exports minus imports) had a deficit of 5.3325 trillion yen. This is a deficit for four consecutive years. The deficit fell 44.0% from the previous year. Although both imports and exports declined, the historic depreciation of the yen pushed up exports.

Exports in 2024 increased by 6.2% year-on-year to 107.912 trillion yen. It has exceeded 100 trillion yen for two consecutive years, setting a record high since 1979. The export quantity index in the trade index (with 2020 as 100) fell 2.6% to 102.9, falling for three consecutive years. The exchange rate averaged 150.97 yen to the US dollar throughout the year, and the yen depreciated by 7.7%.

Exports of semiconductors and other manufacturing equipment, which are in high demand, were 4.4962 trillion yen, up 27.2%, with Asia as the center. Automobiles grew 3.7% to 17.9094 trillion yen, a record high.

By region, exports to Asia grew 8.3% to 56.8708 trillion yen, driving overall growth. Exports of semiconductors and other manufacturing equipment for IC manufacturing increased by 34.8%. Electronic components such as semiconductors grew by 11.6%. Exports to China grew 6.2% to 18.8651 trillion yen.

Exports to the United States grew 5.1% to 21.2951 trillion yen. It is the largest export destination by country. In addition to the depreciation of the yen, sales of high-priced hybrid vehicles (HVs) were strong, and automobile exports increased by 3.1%. Auto parts also grew by 14.5%.

Exports to the European Union fell 3.9% to 9.9659 trillion yen. Exports of automobiles and steel decreased.

Imports increased by 1.8% year-on-year to 112.4238 trillion yen. By category, personal computers and other electronic computers increased by 31.7% to 3.2706 trillion yen, and non-ferrous metal minerals increased by 14.7% to 2.749 trillion yen.

Crude oil decreased by 4.4% to 10.8694 trillion yen. The import price of crude oil was 79,494 yen per thousand liters, up 3.9%, but decreased by 8% year-on-year in terms of volume.

By region, imports from Asia increased by 3.5% to 53.8439 trillion yen. With China as the center, personal computers and other electronic computers increased by 19.9%. In terms of petroleum products, imports from South Korea and other countries increased by 25.2%. Imports from China increased by 3.6% to 25.3008 trillion yen.

Imports from the United States increased by 9.5% to 12.6533 trillion yen. Electronic computers increased by about 3 times. Power equipment such as aircraft engine parts increased by 24.6%.

With the increase in imports of pharmaceuticals and aircraft, the total imports from the EU increased by 3.8% to 11.8606 trillion yen.

The trade surplus in December 2024 was 130.9 billion yen. It was a surplus after 5 months. In addition to the strong export of semiconductor manufacturing equipment, the import of crude oil decreased.