Home > Statistics > Handbook > Chapter 11 Trade, International Balance of Payments, and International Cooperation
Main contents start here
Although Japan's trade surplus has continued since 1981, the trade turned to a deficit in 2011 for the first time in 31 years. This trade trend is considered to be affected by the Great East Japan Earthquake, rapid appreciation of the yen, and the slowdown in global economy. In terms of Japan's international trade on a customs clearance basis in 2011, exports (in FOB value) showed an annual decrease of 2.7 percent to 65.5 trillion yen. Imports (in CIF value) grew by 12.1 percent to 68.1 trillion yen, an increase for the second consecutive year. As a result, Japan's trade deficit was 2.6 trillion yen.
Japan's 2011 exports increased by 0.2 percent from the previous year in terms of unit value index (an increase next to the preceding year), and decreased by 3.0 percent from the previous year in terms of quantum index (the first decrease in two years).
Japan's imports in 2011, unit value index and quantum index, increased by 8.7 percent and 3.2 percent compared to the previous year; both indices recorded their second consecutive year of increase.
Japan's exports in 2011 consisted of transport equipment, which accounted for the largest portion of the total export value, 21.4 percent, followed by general machinery and electrical machinery, making up 21.1 percent and 17.7 percent, respectively. Motor vehicles, which are in the transport equipment category, constituted 12.5 percent of the total export value, down 7.0 percent in quantity and 10.6 percent in value from the previous year. One characteristic of Japan's exports is an increasing proportion of high value-added products manufactured with advanced technology, such as motor vehicles, steel and integrated circuits.
The leading import item category was mineral fuels, which represented 32.0 percent of the total value imported, followed by electrical machinery and chemicals, with 11.7 percent and 9.0 percent, respectively. Crude petroleum and partially refined petroleum, in the mineral fuels category, constituted 16.8 percent of the total import value, down 2.7 percent in quantity but up 21.4 percent in value from the previous year. Japan's chief imports used to be energy resources and raw materials, though the proportion of product imports is gradually on the rise due to the further industrialization of the Asian region and overseas production relocations by Japanese companies.
Japan has maintained a trade surplus with Asia, the U.S.A. and the EU, while has been in a continuous deficit with the Middle East and Oceania.
Japan's 2011 trade balance with Asia resulted in 6.3 trillion yen in surplus, the first decrease in two years (down 39.0 percent from the previous year). Exports (in FOB value) totaled 36.7 trillion yen (down 3.0 percent), marking the first decrease in two years; this was mainly due to the contributions for the decrease in electrical machinery and transport equipment. Imports (in CIF value) amounted to 30.4 trillion yen (up 10.5 percent), an increase for the second consecutive year; this was mainly attributed to the increase in mineral fuels and manufactured goods.
In 2011, Japan's trade with China amounted to 12.9 trillion yen in exports and 14.6 trillion yen in imports. Both exports and imports to China account for approximately 20 percent of Japan's total value and China is the largest trade partner of Japan.
Japan's 2011 trade balance with the U.S.A. was 4.1 trillion yen in surplus, smaller than the previous year (down 8.4 percent from the previous year). Exports (in FOB value) amounted to 10.0 trillion yen (down 3.4 percent), the first decrease in two years; major contribution for the decrease was in transport equipment and electrical machinery. Imports (in CIF value) totaled 5.9 trillion yen (up 0.3 percent), an increase for the second consecutive year; the increase was due mainly to the contributions in foodstuffs and mineral fuels.
Japan's 2011 trade balance with the 27 member countries of the EU registered a narrowed surplus of 1.2 trillion yen (down 32.7 percent from the previous year). Exports (in FOB value) totaled 7.6 trillion yen, almost the same level as those of the previous year, owing mainly to the contributions for the decrease in electrical machinery and increase in general machinery. Imports (in CIF value) totaled 6.4 trillion yen (up 10.1 percent), because of contributions for the increase in chemicals and transport equipment, etc.
In 2011, Japan's current account amounted to 9.6 trillion yen, down by 46.6 percent compared to that in the previous year, which resulted in a surplus shrinkage. This is mainly because Japan started to suffer a trade deficit. A breakdown of Japan's current account showed that its trade balance recorded 1.6 trillion yen in deficit, for the first time in 48 years since 1963, due to the decrease in the exports from the impact of the Great East Japan Earthquake and the increase in the imports of mineral fuels, etc. The services balance was 1.8 trillion yen in deficit, the first increase in deficit in four years. The income balance increased by 13.1 percent over the previous year to 14.0 trillion yen, marking the first increase in surplus in four years.
On the other hand, the balance of the capital and financial account registered a surplus of 6.3 trillion yen, scoring a black ink figure (excess inflow) for the first time in seven years.
Japan's foreign assets (the balance of overseas assets held by residents in Japan) as of the end of 2011 amounted to 582.0 trillion yen, while its foreign liabilities (assets held in Japan by nonresidents) were 329.0 trillion yen. As a result, Japan's net foreign assets (foreign assets minus foreign liabilities) were 253.0 trillion yen.
Japan's foreign reserve assets remained at around 220 billion U.S. dollars during the period from 1996 to 1998. However, they started to increase from 1999, reaching 1,295.8 billion U.S. dollars at the end of 2011. This represented an increase of 199.7 billion U.S. dollars (18.21 percent) from the end of the previous year.
The yen against the U.S. dollar was 83.19 yen in May 1995. The trend subsequently shifted to a progressively weaker yen, which eventually reached 143.79 yen in July 1998. After hovering between the 100 and 140 yen ranges for the most part, the yen began appreciating sharply in late 2008 and reached 77.59 yen in July 2011. As of the end of June 2012, the rate was 79.61 yen.
International cooperation donors are becoming increasingly diverse: official development assistance (ODA) by the government, direct investments and export credits by private corporations, donations by nonprofit organizations, aid activities by NGOs and volunteer citizen groups, etc. In addition, there are various forms of assistance, including bilateral assistance and assistance through multilateral institutions.
In the ODA framework, Japan has contributed to the growth of developing countries as the world's number-one ODA donor for ten consecutive years up until 2000. Recently, Japan's ODA budget has been declining because of the country's severe economic and financial situation. Its 2010 ODA spending (on the basis of net disbursement at current prices) increased by 16.4 percent over the previous year to 11.0 billion U.S. dollars, marking the first increase in two years.
In 2010, the 23 member countries of the Development Assistance Committee (DAC) of the OECD provided 128.5 billion U.S. dollars in ODA. Of this total, Japan's ODA contribution accounted for 8.6 percent, making Japan the fifth-largest contributor behind the U.S.A., the U.K., Germany and France. The ratio of Japan's ODA to Gross National Income (GNI) was 0.20 percent, or an increase of 0.02 percentage point compared with that of the previous year.
Of the 11.0 billion U.S. dollars in ODA provided by Japan in 2010, 7.3 billion U.S. dollars or 66.6 percent was bilateral ODA (up 18.8 percent year-on-year), and 3.7 billion U.S. dollars or 33.4 percent was ODA contributed through multilateral institutions (up 12.0 percent).
Bilateral ODA provided in 2010 consisted of 3.5 billion U.S. dollars in grants-in-aid, 3.5 billion U.S. dollars in technical cooperation, and 0.4 billion U.S. dollars in loans, etc.
By region, bilateral ODA (including aid to Eastern European countries and graduated countries) was distributed as follows: Asia, 34.0 percent; Sub-Saharan Africa, 23.3 percent; Middle East and North Africa, 21.4 percent; Europe, 2.4 percent; Oceania, 2.4 percent; and Latin America, -4.6 percent.
Bilateral ODA in 2010 (including aid to Eastern European countries and graduated countries) was broken down by purpose (on a commitment basis) as follows: 40.4 percent for improving the social and administrative infrastructure (including education, water supply and sanitation), followed in descending order by economic infrastructure, with 36.1 percent.
In addition to the financial assistance described above, Japan has also been active in the areas of human resources development and technology transfer, both vital to the growth of a developing country, through its ODA activities.
Some of the publications on this site are in PDF. To view them you will need to have Adove Acroabt Reader. Please click the graphic link to download Acrobat Reader.