Soared on Historical Yen Depreciation… Japan's Exports Hit Record High

Japan's Exports Last Year 107 Trillion 912 Billion Yen

"Exports Increased Due to Historical Yen Depreciation"

Trade Deficit 5 Trillion 332.5 Billion Yen… 44% Reduction

Japan significantly reduced its trade deficit last year thanks to record-high exports. The historical yen depreciation greatly boosted exports.

According to the preliminary 2024 trade statistics released by Japan's Ministry of Finance on the 23rd, the trade balance, which is exports minus imports, was a deficit of 5 trillion 332.5 billion yen. This marks the fourth consecutive year of deficit. However, the deficit was reduced by 44.0% compared to the previous year. Nihon Keizai Shimbun analyzed, "Both export and import volumes decreased, but the historical yen depreciation boosted exports."

Last year's exports increased by 6.2% compared to the previous year, reaching 107 trillion 912 billion yen. It exceeded 100 trillion yen for the second consecutive year, marking the highest since comparable records began in 1979. However, the export volume index (2020=100) fell by 2.6% to 102.9, marking a decline for the third consecutive year. The average annual yen-dollar exchange rate last year was 150.97 yen per dollar, with the yen's value falling by 7.7%.

Exports of manufacturing equipment such as semiconductors, which are in high demand mainly in Asia, increased by 27.2% to 4 trillion 496.2 billion yen. Automobiles increased by 3.7% to 17 trillion 909.4 billion yen, marking a record high.

By region, exports to Asia increased by 8.3% to 56 trillion 870.8 billion yen, driving performance. Manufacturing equipment such as semiconductors increased by 34.8%, and electronic components such as semiconductors increased by 11.6%. Exports to China increased by 6.2% to 18 trillion 865.1 billion yen.

Exports to the United States increased by 5.1% to 21 trillion 295.1 billion yen, making it the largest by country. In addition to the yen's depreciation, strong sales of high-priced hybrid cars led to a 3.1% increase in automobile exports. Automobile parts also increased by 14.5%.

Imports increased by 1.8% compared to the previous year, reaching 112 trillion 423.8 billion yen. By item, computers and other computing devices increased by 31.7% to 3 trillion 270.6 billion yen, and non-ferrous metal ores increased by 14.7% to 2 trillion 749.0 billion yen. Crude oil imports decreased by 4.4% to 10 trillion 869.4 billion yen.

By region, imports from Asia increased by 3.5% to 53 trillion 843.9 billion yen. Computers and other computing devices increased by 19.9%, centered on China. Petroleum products increased by 25.2%, centered on Korea. The United States showed a 9.5% increase to 12 trillion 653.3 billion yen.

In December last year, the trade balance recorded a surplus of 130.9 billion yen. It was the first surplus in six months. Exports of semiconductor manufacturing equipment were strong, while crude oil imports decreased.

Tokyo=Kim Il-kyu, Correspondent black0419@hankyung.com