RIYADH: Kuwait’s trade surplus with Japan rose 15 percent year on year to 76.9 billion Japanese yen ($542.8 million) in August, official data showed.
This marks the first increase in two months, driven by a surge in Kuwaiti exports to Japan, according to a preliminary report by the Japanese Ministry of Finance.
The Gulf nation has maintained a trade surplus with Japan for 16 years and seven months.
Kuwaiti exports to Japan grew by 11.8 percent in August to 98.4 billion yen, rebounding after two months of declines. Meanwhile, Kuwaiti imports from Japan rose for the fourth consecutive month, increasing by 1.9 percent to 21.5 billion yen.
In contrast, the Middle East’s overall trade surplus with Japan fell by 4.8 percent to 852.2 billion yen in August, as exports from the region dropped by 1 percent compared to the previous year.
Shipments of oil, refined products, liquefied natural gas, and other natural resources, which account for 94.7 percent of the region’s exports to Japan, declined by 2.3 percent.
Imports from Japan to the Middle East, however, rose by 12.8 percent, driven by higher demand for cars and machinery.
Japan, the world’s third-largest economy, recorded a trade deficit for the second consecutive month in August, totaling 695.3 billion yen. This was influenced by the ongoing depreciation of the yen, which has continued to push up the cost of imports.
Japan’s exports rose 5.6 percent, supported by shipments of semiconductor manufacturing equipment, while imports increased by 2.3 percent, fueled by rising costs of pharmaceuticals and petroleum products, exacerbated by the weaker yen against the dollar.
In the energy sector, Japan imported 62.54 million barrels of oil in June, with 96.3 percent or 60.26 million barrels, sourced from the Arab region, as reported by the Agency of Natural Resources and Energy of Japan’s Ministry of Economy, Trade, and Industry in July.
Saudi Arabia and the UAE dominated Japan’s oil imports, with Saudi Arabia contributing 25.82 million barrels, representing 41.3 percent of the total, and the UAE providing almost the same share with 25.84 million barrels.
Kuwait was a significant contributor to Japan’s oil imports in June, supplying 5.21 million barrels, or 8.3 percent of the total.
Other key suppliers included Qatar, with 2.44 million barrels, accounting for 3.9 percent, and Oman, with about half a million barrels, making up 0.8 percent.
With Japan continuing its ban on importing oil from Iran and Russia in June, the remaining shipments of the fuel were sourced from the US at 1.4 percent, Central and South America at 1.6 percent, Southeast Asia at 0.5 percent, and Oceania at 0.2 percent.
China remains Japan’s largest trading partner, followed by the US.
