Japan's trade balance ex-energy is improving
Japan’s exports rose at the fastest clip in more than three years as demand for chips related to artificial intelligence offset sluggish car shipments to the US, in data that were helped somewhat by the Lunar New Year effect. The value of overall exports gained 16.8% in January from a year earlier, the sharpest increase since November 2022, the Finance Ministry reported Wednesday. That beat the median analyst forecast of a 13% rise. Overall shipments of semiconductors and other electronic components rose by almost 40%, led by a 51.7% increase in exports to China. (BBG – Continue Reading)
I also like to look at the trade balance ex-energy which shows an improving trend. My thesis is that, in the medium term, Japan should be able to reduce its dependence on energy imports as it restarts nuclear power plants. As of end-2024, Japanese utilities had restarted 14 reactors since the Fukushima accident, including Onagawa Unit 2 in November 2024 and Shimane Unit 2 in December 2024, bringing the total to 14 of the 33 reactors that remain operable. (EIA) Japan's government approved a new basic energy plan in February 2025 that removed the phrase about minimising dependence on nuclear power — present in every plan since 2014 — replacing it with an intention to make maximum use of existing plants, targeting nuclear at around 20% of energy supply by 2040. (Nippon)