Kuwait’s Trade Surplus with Japan Plummets Over 50% in September

Kuwait city: Kuwait's trade surplus with Japan significantly dropped by 51.7 percent to JPY 37.6 billion (USD 234 million) in September, marking the first reduction in two months, primarily due to a decline in exports, according to new government data. According to Kuwait News Agency, the Finance Ministry's preliminary report revealed that despite the sharp fall in the trade surplus, Kuwait has maintained a positive trade balance with Japan for over 16 years. The decline was led by a 39.4 percent decrease in Kuwaiti exports to Japan, which totaled JPY 62.4 billion (USD 396 million). This downturn in exports is the first observed in the past two months. Conversely, imports from Japan also experienced a slight dip of 1.1 percent, totaling JPY 24.8 billion (USD 155 million), marking the first decrease after five months of growth. The report also highlighted the broader trade dynamics within the Middle East, where the trade surplus with Japan narrowed by 14.5 percent to JPY 628.1 billion (USD 4.2 billion). Expo rts from the region to Japan decreased by 6.8 percent, primarily in crude oil, refined products, liquefied natural gas (LNG), and other natural resources, which make up 94.6 percent of total exports to Japan. These commodities saw a 7.1 percent reduction. Meanwhile, imports from Japan into the region grew by 11.7 percent, spurred by strong demand for automobiles. The global context shows Japan, the world's third-largest economy, grappling with a trade deficit for the third consecutive month, standing at JPY 294.3 billion (USD 1.9 billion) in September. A weakening yen has escalated the cost of imports, particularly of automobiles and mineral fuels, which contributed to a 1.7 percent reduction in exports compared to the previous year. China and the United States continue to be Japan's largest trading partners, with trade data compiled on a customs-cleared basis before seasonal adjustments.