Kuwait city: Kuwait's trade surplus with Japan in January decreased by 36.9 percent from the previous year, amounting to JPY 48.5 billion (USD 295 million), as reported by government data. This marks the third consecutive month of decline due to reduced exports.
According to Kuwait News Agency, despite the decrease, Kuwait maintained a positive trade balance with Japan for 18 years on a monthly basis, as exports continued to surpass imports in value. The Finance Ministry's preliminary report indicated that overall Kuwaiti exports to Japan fell by 35.4 percent year-on-year to JPY 65.3 billion (USD 404 million), marking a third straight month of decline. Imports from Japan also saw a decrease of 30.5 percent, totaling JPY 16.9 billion (USD 102 million), which is a decline for the first time in two months.
The trade relationship between the Middle East and Japan also experienced a downturn, with the region's trade surplus with Japan dropping 22.6 percent to JPY 645.0 billion (USD 4.2 billion) in January. Exports from the Middle East to Japan decreased by 14.5 percent compared to the previous year. The decline in exports can be attributed to a 14.8 percent reduction in crude oil, refined products, liquefied natural gas (LNG), and other natural resources, which comprised 94.2 percent of the region's total exports to Japan.
While the region's overall imports from Japan increased by 3.0 percent due to demand for electrical machinery, the shipment of automobiles saw a decline of 7.2 percent. Japan's global trade balance returned to a deficit for the first time in three months, reaching 1.2 trillion (USD 7.5 billion) in January, though the deficit size dropped by 58 percent from the previous year. Exports increased by 16.8 percent year-on-year, driven by sales of semiconductors and other electronic parts, non-ferrous metal, and plastic. Imports decreased by 2.5 percent, primarily due to lower energy bills, including LNG, crude oil, and petroleum products.
China remained Japan's largest trade partner for both December and the entire year, followed by the United States. The trade data is measured on a customs-cleared basis before adjustment for seasonal factors.