Japan Goods Trade Balance

Japan's Goods Trade Balance reflects the difference between exported and imported goods in the given month, in monetary terms. If a country imports more goods than it exports, a trade deficit is formed, otherwise there is a surplus.

Goods Trade Balance marked a big plus (surplus) over other countries in 1980s and 1990s, which indicated the bubble period. Japan was the world's largest trade surplus country during this period. Due to the effects of the "financial crisis" of the United States, Japan also encountered a "global recession" which is said to occur once every 100 years, and both exports and imports fell sharply.

Japan's balance of trade has expanded in a wide range since it turned negative due to the massive import of natural gas when the Great East Japan Earthquake and the Fukushima Daiichi Nuclear Power Plant accident occurred. Japan's trade deficit turned out to be noticeable in the first half of the 2010s, but then the trade deficit shrank sharply due to YEN's depreciation, and it turned out to be in black.

The main products of Japanese exports are automobiles and parts of automobiles, electronic parts such as semiconductors, and steel. Exports of semiconductors and other electronic components are mainly performed to Asian countries such as Taiwan, Hong Kong, and Korea. Exports of steel are mostly for China, Thailand, and Korea.

The index interpretation and its impact on JPY depend on the GDP and current economic conditions.