Japan Chemical Trading Blog
Japan’s Trade Deficit Expected to Be Reduced in 2015
On December 4, the Japan Foreign Trade Council, comprising Japanese trading companies, announced its forecast for Japan’s trade deficit for fiscal 2015 to be about 10.5 trillion Japanese yen (approx. USD a hundred and five billion).
This is a slight improvement against the forecast for fiscal 2014, which was about 11.7 trillion Japanese yen.
Yet the trading balance is in a permanent deficit trend, with 7 trillion Japanese yen for fiscal 2012 and 11.5 trillion Japanese yen for fiscal 2013.
The suspension of nuclear power generation has led to increased imports of mineral fuels (coal, oil and LNG). However, the observed increase is just 3-4 trillion Japanese yen, and it can be said that the Japanese trade deficit is a structural change.
In this respect, Japan seems to be following the path of the former British Empire, or that of the current USA. Being scarce in natural resources and having the world’s worst government debt compared to GDP ratio, this is an issue that cannot be ignored.
It is important to abolish unnecessary regulations and to attract direct foreign investments to Japan. Nevertheless, as an export company, we think it is ideal if more excellent products that are able to enrich the lives of people around the world are developed in Japan, and by delivering them outside Japan, will increase exports from Japan.