Main article: Economy of Japan
2024: Japan bans exporting software-controlled machines to Russia
In February 2024, Japan banned the export of numerical control (CNC) machines to Russia. The corresponding document is published on the website of the Ministry of Economy, Trade and Industry of Japan. Read more here.
2023
Trade turnover of Russia and Japan for the fiscal year decreased by 42%
The trade turnover of Russia and Japan for the fiscal year 2023, which ended on March 31, 2024, decreased by a little more than 42% and amounted to 1.3 trillion yen ($8.4 billion at the rate at the time of publication of the material - April 17, 2024).
According to TASS, citing statistics from the Japanese Ministry of Finance, in 2023, goods from this country arrived in Russia in an amount that is 35% less than a year ago. Imports of products from the Russian Federation in Japan also decreased - by 44.3%.
At the same time, imports of grain from Japan to Russia in fiscal 2023 increased by 41.8%. At the same time, in March 2024 , this figure decreased by 94.3% compared to the same period in 2023 .
It is reported that in fiscal year 2023, imports of seafood from Japan to Russia decreased by 5.5%, but in March 2024 this figure increased by 43.7% compared to the same period in 2023. In fiscal 2023, Japan also reduced imports of vegetables from the Russian Federation by 59.2% and fruits by 99.3%.
According to the Japanese Ministry of Finance, the supply of passenger cars from Japan to the Russian Federation in fiscal 2023 fell by 7%. At the same time, the export of buses and trucks decreased by 55.1%, and the supply of spare parts and components - by 34.9%. At the same time, in March 2024, the export of passenger cars from Japan to the Russian Federation decreased by 15.3% compared to the same period in 2023. At the same time, the supply of buses and trucks, as a year earlier, was completely absent, and the export of spare parts and components decreased by 37.4%.
The decline in trade between Japan and Russia is caused by both economic restrictions and geopolitical factors, such as the imposition of sanctions and a change in trade policy.[1]
Car exports from Japan to Russia contracted for the second year in a row
In 2023, the export of passenger cars from Japan to Russia amounted to 212 thousand units, down 3.7%. The annual drop was the second in a row. This is evidenced by the data of the Japanese Ministry of Finance, which were released in January 2024. Read more here.
Japan's exports to Russia fell by a third
Trade between Russia and Japan in 2023 decreased by 45.3% compared to 2022 and amounted to 1.43 trillion yen, or $9.6 billion at the exchange rate at the time of publication of the material (January 24, 2024). Read more here.
Reduction of LNG imports
Average quarterly trade deficit $35 billion
Gone are the glorious times when Japan was a net exporter, and in 2023 the country has an average quarterly trade deficit of $35 billion compared to the conditional surplus rate of $20-25 billion from 1995 to 2010.
Rising raw material prices, the loss of competitiveness of highly technological exports due to the development of China, South Korea and Taiwan, low economic profitability and severe restrictions on the labor market have all combined to limit export potential.
Moreover, most importantly, the collapse of the yen did not help in any way (the USD/JPY pair has grown by 50% since December 2020), and the export of goods and services is at the same level (about 225 billion per quarter), although global demand has grown significantly over 2.5 years, Spydell Finance wrote.
The diagnosis for the export part of the Japanese economy is hopeless, because more comfortable conditions than at this time are unlikely to be in the medium term.
In Q3 2022, Japan's trade deficit reached a historic anti-record of $52.4 billion due to the high cost of raw materials (Japan is a net importer of almost the entire spectrum of raw materials), but as of Q2 2023, the trade deficit fell to $15 billion.
In 2016-2017 and mid-2020, the surplus was mainly due to cheap raw materials. In the current configuration of Japan, it is extremely difficult to return to the trade surplus: the cost of imports has increased (not only raw materials, but also throughout the range of nomenclature) and in the past three years China has been very crowded with Japan in its usual sales markets (especially auto exports).
Japan also has an average quarterly secondary income deficit of 6-7 billion. Then where does the current account surplus come from, which rose to $40 billion in 2Q23, which is close to the $40-50 billion norm?
Investment income has greatly accelerated, which grew to an average quarterly of $65-70 billion against $55 billion in 2021 and $48 billion in 2017-2019. Including portfolio investments: the average quarterly outflow of residents in 2017-2019 was $39.7 billion, the inflow (repatriation of capital to Japan) at $1.4 billion in 2021 and the inflow of $11.3 billion from 1q22 to 2q23. The return of Japanese capital from foreign markets back to Japan (sale of assets in dollars, euros and pounds) is recorded.
Thus, the investment behavior of the Japanese contradicts sound logic.
A strong yield gap has always been relevant in Japan (low returns on financial instruments in Japan and high returns on foreign markets), but since March 2022, the yield gap has rapidly increased and reached an all-time high in October 2023, which, within the framework of adequate economic motivation, should increase capital outflow, and its return occurs.
Maintaining a large trade deficit
The trade balances of the Eurozone and Japan have sharply gone into the red. Data for February 2023
Negative trade balance in January by $26 billion
2022
G7 countries are the main export destination
China is the largest export destination
Maintaining the volume of passenger car exports
Deliveries of Japanese used cars to Russia for the year increased by 32%
In 2022, deliveries of used cars from Japan to Russia reached 213.5 thousand units, which is 32% more than a year earlier. Such data on February 13, 2023 was provided by an official representative of the Japanese Association of Used Car Exporters (JUMVEA). SUVs such as the Toyota Land Cruiser are in greatest demand, he said.
"It is difficult for us to answer the question about the reasons for the growth of demand in Russia for Japanese used cars. It is possible that this is due to their generally good technical condition and low mileage, "JUMVEA told TASS. In more detail here
Trade between Japan and Russia grew by 6.2%, to $19.96 billion
The trade turnover of Japan and Russia in 2022 increased by 6.2%, to 2.56 trillion yen (about $19.96 billion), despite sanctions during the conflict in Ukraine.
2021
China's second largest trading partner
Eighth largest importer to Russia
Coal imports from Russia
For 2021 Russia , it sends most of its coal to Asia, as it Europe avoids this fuel.
Stagnation of exports to the United States amid a boom in other Asian countries
2019
Exporting Computer Devices
Decrease in trade with Russia relative to 2014
The Impact of the Trump Administration's Trade Restrictions
2018
Dynamics of the balance of exports and imports with South Korea. Schedule
In 1990, more than 20% of Korean exports went to Japan, and in 2018 this figure decreased to 5%. Japan's exports to South Korea were more stable at 6 to 8%.
Rising Japanese whiskey exports
See also
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