Japan sees record trade deficit in August on weak yen, costly oil imports

Japan posted a record trade deficit in August as costs for imports of oil and gas soared, the government reported on Thursday.

The 2.82 trillion yen (USD 19.6 billion) deficit, the 13th in a row, was triple the deficit logged in the same month a year earlier.

Customs-data showed exports rose 22 per cent from a year earlier as regional economies recovered from pandemic-related disruptions while imports soared 50 per cent.

Energy-related imports from the Middle East accounted for about half of the deficit.

Japan’s currency, the yen, has weakened sharply against the US dollar as the Federal Reserve has raised interest rates to counter inflation.