Japan Sees Record Exports and Imports Amid Trade Deficit

Japan's imports and exports set records in July as soaring energy costs and a weak yen fueled a third consecutive month of trade deficit. The country's Finance Ministry reported that Japan's trade deficit totaled 634.5 billion yen ($4 billion) last month, with imports surging 27.8% from the same period a year ago to 12.15 trillion yen ($77 billion).

The strong demand for oil due to the ongoing war in Iran has driven crude oil prices up, affecting Japan's oil imports which account for nearly all of its energy needs. Despite this, exports rose 23.2% to 11.51 trillion yen ($73 billion), mainly boosted by auto exports to the US and other nations.

The value of both imports and exports reached their highest levels in July since comparable data became available in January 1979, according to the ministry. The weak yen has been a boon for Japan's giant exporters, such as Toyota Motor Corp., as it boosts the value of overseas earnings. However, this also makes raw materials and other essentials more expensive when purchased abroad.