Japan’s exports rose 23.2% year-on-year in July to a record 11.5 trillion yen, the fastest pace since 2010, as demand for semiconductors and AI-related infrastructure bolstered shipments to major trading partners.
Exports to the United States increased 22% from a year earlier, while shipments to China climbed 25.8%, according to data released Thursday. The gains extended a 19.3% rise in June, exceeding market forecasts of a 19.9% increase. A weaker yen, which stood at 158.39 per dollar, improved the competitiveness of Japanese goods abroad.
Imports also surged, up 27.8% to a second consecutive monthly record of 12.1 trillion yen, or $76.39 billion, driven by higher energy costs and a 5.5% increase in crude oil import volumes—the first rise in four months. The value of oil imports jumped 87.8%, reflecting elevated global prices and a shift toward pricier U.S. crude shipments over Middle Eastern supplies.
The trade deficit narrowed to 634.5 billion yen, below the 680 billion yen forecast, as export growth outpaced import expansion. Producer prices rose 7.2% year-on-year, reflecting persistent upward pressure from commodity and energy costs.
Economists at Daiwa Institute of Research noted that the recovery in crude volumes, combined with high oil prices and increased U.S. crude shipments, has been pushing up import values. The Bank of Japan is widely expected to raise interest rates in September, following three consecutive quarters of economic expansion.
The data underscores Japan’s reliance on external demand amid a backdrop of rising global energy prices and a depreciating currency.
