Japan in record trade deficit under Kishida (Russia)
Kanako Mita, Sawako Utsumi, and Lee Jay Walker
Modern Tokyo Times
Prime Minister Fumio Kishida of Japan keeps on breaking negative new records. Thus no shock that Japan recorded its highest ever trade deficit in August since this index was recorded (1979). Therefore, since Kishida took office, trade deficits have become the norm.
NHK reports, “Japan’s trade balance has remained in negative territory for 13 months in a row.”
The Japanese Yen was 110 to the Dollar when Kishida took office. However, the Yen is now in the 140 to 145 range. Kishida also can’t evade putting Japan under further pressure because he jumped on the anti-Russian Federation bandwagon concerning sanctions. Therefore, nations from China to India are utilizing their respective ties with the Russian Federation to obtain favorable energy and other important resources.
Reuters reports, “The yen’s fall by nearly 20% over the past six months added to higher import costs, aggravating already high costs of energy and raw materials.”
America and the European Union are tightening their respective monetary policy. Hence, Japan’s exports face the threat of a global economic slowdown.
The Japanese Finance Ministry stated that the deficit last month reached 2.82 trillion yen ($20 billion).
Associated Press says, “Japan’s currency, the yen, has weakened sharply against the U.S. dollar as the Federal Reserve has raised interest rates to counter inflation. Surging prices for many commodities and other products are also pushing Japan’s imports higher.”
Japan fears China’s slowing economy and the effects of rate hikes and inflation in America. Therefore, many Japanese companies are becoming anxious about the possible slowdown in exports at a time of high energy costs and other global negatives
Kyodo News reports, “Russia’s war on Ukraine has sent crude oil and other raw material costs surging. The yen’s rapid weakening against the U.S. dollar has added to the woes of Japan as it inflates import costs.”
The above is self-induced because other major nations in Asia – including China and India – maintain positive relations with the Russian Federation. Hence, increasing trade volumes. Therefore, Kishida’s pro-America foreign policy is putting further strains on the economy of Japan.
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