Japan Today
business

Japan racks up ¥462.5 bil trade deficit as imports balloon due to cheap yen

19 Comments
By YURI KAGEYAMA

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

©2024 GPlusMedia Inc.

19 Comments
Login to comment

With only 38% of self sufficieny in food production, on top of being energy dependent and resource poor, Japan faces huge issues if this continues.

11 ( +15 / -4 )

@Antique

Using the USA as a Guage doesn't work! ....no social systems like in Japan...

That's a laugh. The average social security check in the US is around $1,700 a month. My 27 years of nenkin contributions and 10 years of corporate pension will deliver me around 85,000 yen, less than a third of what the average American gets.

3 ( +4 / -1 )

One factor behind the weakening yen is Japan’s low interest rates, with the benchmark still barely above zero, a policy the Bank of Japan has taken to keep a stagnant economy going and encourage lending.

I will never understand this idea of raising rate to "help" the economy!

You raise rates, cost of buying a house goes up, rents go up, cost of expanding a business goes up, cost of loan repayment goes up, cost of buying a car goes up, etc...

So businesses looking for a loan to expand decide not to, people looking at buying a house, change their minds either don't buy or buy cheaper! People keep their car longer to avoid higher interest rates and higher payments. Companies and businesses barely getting by can no longer afford the higher payments so close or go bankrupt.

Food prices go up, companies cut their workforce, etc...

Look at Canada, 5 hikes and business insolvency jumped 41% and the combined personal and business jumped nearly 24%.

And consumer prices are still going up!

Using the USA as a Guage doesn't work! Its economy is too different, no social systems like in Japan, no actual national health care, etc...so the up turn in the economy in the USA is only on paper, the Rich the banks, etc..but not the lower or middle class.

The use and need for food banks in the USA is at an all time high and the highest number of first time users.

2 ( +8 / -6 )

Japan racks up ¥462.5 bil trade deficit as imports balloon due to cheap yen

Am I the only one scratching my head? Cheaper yen makes imports far more expensive, and previous reports, here on JT, stated that due to the cheaper yen imports fell.

2 ( +3 / -1 )

Now a weak Yen is getting blamed for the trade deficit?

It's because Japan does a lot less manufacturing now than before.

2 ( +3 / -1 )

Print trillions of yen to finance your reckless spending which in turn destroys your currency and then blame imports.

2 ( +5 / -3 )

One factor behind the weakening yen is Japan’s low interest rates,known as Quantitative Easing and supplementing the incomes of large asset holders ,a benchmark still barely above zero, a policy the Bank of Japan has taken to keep large asset holders wealth from stagnating while the rest of the economy stagnated , and encourage depletion of middle class wealth.

Fixed to remove the voodoo economic propaganda from the BOJ, LDP and Kyodo.

https://reason.org/commentary/how-quantitative-easing-helps-rich/

1 ( +8 / -7 )

Which is offset by record profits on exports. They are losing daily not increasing the price of exports. If customers were good at paying $10 for something then adjust the price so it’s still $10. The dollar strength means record profits.

1 ( +1 / -0 )

30+ years ago western nations complained that the then far weaker Yen caused Japan's trade surplus with them. Now a weak Yen is getting blamed for the trade deficit?

0 ( +2 / -2 )

The world banks is bankrupt no money, borrow borrow and borrow, the governments print money and raise taxes to support their social programs and then tax the people. The people is the product of the countries in which they live. This is why they want young people to have children to continue paying the bills if there's no people they can't survive. Things will only get worse.

0 ( +3 / -3 )

My 27 years of nenkin contributions and 10 years of corporate pension will deliver me around 85,000 yen, less than a third of what the average American gets.

And that is every two months right?

0 ( +0 / -0 )

Cheers,Abe and the BOJ.

While the big companies live it large the little people burn.

-2 ( +16 / -18 )

AntiquesavingMay 22 06:24 pm JST

One factor behind the weakening yen is Japan’s low interest rates, with the benchmark still barely above zero, a policy the Bank of Japan has taken to keep a stagnant economy going and encourage lending.

I will never understand this idea of raising rate to "help" the economy!

You raise rates, cost of buying a house goes up, rents go up, cost of expanding a business goes up, cost of loan repayment goes up, cost of buying a car goes up, etc...

So businesses looking for a loan to expand decide not to, people looking at buying a house, change their minds either don't buy or buy cheaper! People keep their car longer to avoid higher interest rates and higher payments. Companies and businesses barely getting by can no longer afford the higher payments so close or go bankrupt.

Food prices go up, companies cut their workforce, etc...

Well, the alternative is the hollowing out of the currency and all that entails. It should have been raising alarm bells for how long Japan was at negative interest rates.

Using the USA as a Guage doesn't work! Its economy is too different, no social systems like in Japan, no actual national health care, etc...so the up turn in the economy in the USA is only on paper, the Rich the banks, etc..but not the lower or middle class.

The use and need for food banks in the USA is at an all time high and the highest number of first time users.

Does insulting the US with fantasies make you feel like Japan is doing well?

-2 ( +1 / -3 )

ProtestantToday 05:40 pm JST

A resource impoverished nation is fundamentally a poor nation.

Someone forgot to tell Ireland, Switzerland, South Korea, and Taiwan that.

-3 ( +5 / -8 )

""The dollar has been trading at about 156 yen lately, up from 139 yen a year ago, at one point reaching 160 yen.""

200 is the PERFECT number. was there many years back and will eventually get there for Toyota and the rest of Corporate Nippon.

-3 ( +2 / -5 )

Oops, so we can suddenly exclude tourism as the big saviour?

-4 ( +8 / -12 )

All the more reason to stop all these silly anti tourists things and have as many foreign tourists come here brings their money, spend it and leave it here!

Every yen they bring in is one more yen brought back countering the deficit!

-7 ( +5 / -12 )

Japan faces huge issues if this continues.

Not really. The current account surplus is healthy, more so than its main peers, and the country remains the world's biggest creditor nation. If the trade balance were seen as permanent and serious, Japan could repatriate much of its manufacturing that it has been sending overseas during the last couple of decades.

-11 ( +4 / -15 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites