Japan recorded a record trade deficit in August due to the weak yen and expensive oil

Japan posted a record trade deficit in August as costs for oil and gas imports soared, the government reported Thursday.

The deficit of 2.82 trillion yen ($ 19.6 billion), the 13th in a row, was three times the deficit recorded in the same month the previous year.

Customs data showed that exports increased by 22% from the previous year as regional economies recovered from disruptions related to the pandemic while imports increased by 50%.

Energy imports from the Middle East accounted for about half of the deficit.

The Japanese currency, the yen, weakened strongly against the US dollar as the Federal Reserve raised interest rates to counter inflation. Rising prices for many commodities and other products are also driving up Japan’s imports.

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