Japan's Trade Deficit Persists Amid Soaring Energy Costs

Japan's trade deficit has continued for a third month in July, totaling 634.5 billion yen ($4 billion) according to the Finance Ministry's preliminary report.

The country's imports surged by 27.8% from the same period last year to a seasonally adjusted 12.15 trillion yen ($77 billion), while exports rose by 23.2% to 11.51 trillion yen ($73 billion).

This growth in exports, driven by strong sales of autos and semiconductors to the US and other countries, has now been consistent for nearly a year.

The high energy costs, partly due to the ongoing war in Iran, have contributed significantly to Japan's trade deficit. The country relies heavily on oil imports from the Middle East, which are currently restricted by the conflict.