Kuwait’s Trade Surplus with Japan Drops 65.7% in October

Kuwait’s trade balance with Japan fell sharply by 65.7% y-o-y to JPY 35.2 billion (USD 211 million) in October. This was the second straight monthly decline and was due to weak exports, the Finance Ministry of Japan said. However, since 2007, Kuwait has been enjoying its 16+ years of trade surplus with Japan where the value of exports is still higher than imports.

Kuwait’s exports fall as imports rise

October was the second straight month of decline in Kuwait’s exports to Japan which fell by 46.4% to JPY 66.4 billion (USD 407 million). Crude oil, refined products, and LNG topped categories of exports that contributed to 94.2% of the Middle East’s exports to Japan but declined by 13.8%.  

At the same time, Kuwait’s imports from Japan also surged by 46.6% to JPY 31.2 billion (USD 187 million). It was, however, a slight rebound after two straight months of contraction and primarily led by machinery and automobile shipments.

Middle East trade surplus and Japan’s global deficit

The flow of imports into the Middle East rose by 55.3% to JPY 245.7 billion (USD 1.6 billion) while exports recorded a 16.5% increase and stood at JPY 813.6 billion (USD 5.2 billion). The region’s exports to Japan declined by 13.1% as its imports rose by 35.4% driven by strong demand for industrial products.  

On a larger perspective, Japan was in a state of a monthly global trade deficit for four months in a row reporting a JPY 461.2 billion (USD 2.9 billion) in October. That said, healthy semiconductor and pharmaceutical exports offset the increase in overall imports by 3.1%, while total imports rose by only 0.4%.