Japan logged 2.9 trillion yen trade surplus in 2017

January 24, 2018

Tokyo- Japan posted a customs-cleared trade surplus of 2,991 billion yen in 2017, the second straight year in the black, the Finance Ministry said in a preliminary report Wednesday.

The figure, however, shrank 25.1 percent from the previous year, when the annual trade balance turned positive for the first time since the March 2011 earthquake and tsunami and a subsequent nuclear disaster.

Imports rose faster than exports due to higher natural resources price, causing the decrease in the surplus, ministry officials said.

Japan's surplus with the United States, closely watched by US President Donald Trump's administration, rose 3.1 percent to 7,035.6 billion yen, marking the first increase in two years.

Japan's overall exports advanced 11.8 percent to 78,289.7 billion yen, led by chipmaking equipment bound for South Korea and automobiles for the United States.

Imports grew 14 percent to 75,298.6 billion yen, the first rise in three years. Behind the strength were higher prices of crude oil produced in Saudi Arabia and the United Arab Emirates, as well as of coal and liquefied natural gas.

The yen's weakness helped inflate both the exports and imports.

US-bound exports rose 6.8 percent to 15,111 billion yen, on the back of robust demand for large vehicles and auto parts. Imports from the country grew 10.3 percent to 8,075.5 billion yen, as LNG and coal imports soared.

Exports to mainland China hit a record high of 14,891.4 billion yen, up 20.5 percent, due to strong demand for equipment to make liquid crystal panels for smartphones and other devices. Japan's deficit with mainland China decreased 23.7 percent to 3,553.2 billion yen.

In December alone, Japan's customs-cleared trade surplus fell 43.5 percent from a year before to 359 billion yen, staying in the black for the seventh consecutive month.

Exports rose 9.3 percent to 7,302.1 billion yen, and imports grew 14.9 percent to 6,943.1 billion yen. Jiji Press