The ballooning of Japan’s trade deficit to a record in August highlights the increasing pain of the weak yen as import costs spiral upward, adding pressure on the country’s economic recovery.
The unadjusted trade deficit expanded to ¥2.82 trillion ($19.7 billion) last month, the Finance Ministry reported Thursday. The gap was far larger than economist estimates and extends the sequence of red ink to 13 months, the longest stretch since 2015.
Imports rose 49.9% in value from a year ago, reaching a record, and led by crude oil, coal, and liquid natural gas. Exports increased around half that rate, helped by a continued recovery in car shipments. Compared to the month before, moves were a lot more subdued, as exports fell 0.7% while imports gained 1.5%.