Japan Trade Deficit: Ideas Later.

Japan logs trade deficit of 1.15 tril. yen in Jan., 1st in 3 months

Article source:  https://mainichi.jp/english/articles/20260218/p2g/00m/0bu/023000c

Article to be deleted after ideas.

Article:

TOKYO (Kyodo) -- Japan logged a trade deficit of 1.15 trillion yen ($7.5 billion) in January, its first red ink in three months, government data showed Wednesday, amid a slow recovery in U.S.-bound exports due to tariffs imposed on auto and other products.

The deficit, however, shrank 58.0 percent from a year earlier as overall exports rose 16.8 percent year-on-year to 9.19 trillion yen, up for the fifth straight month, on solid demand for semiconductors and other electronic parts in the rest of Asia, including China, the Finance Ministry said in a preliminary report.

Imports decreased 2.5 percent to 10.34 trillion yen on lower shipments of liquefied natural gas from Malaysia and crude oil from the Middle East, the ministry said.

Japan's exports to the United States fell 5.0 percent to 1.46 trillion yen, dropping for the second straight month, as shipments of motor vehicles declined 9.9 percent in value terms and demand for Japanese pharmaceuticals was sluggish.

While import duties imposed on Japanese cars were lowered to 15 percent from 27.5 percent in September under a trade deal struck by Tokyo and Washington, they remained six times higher than the 2.5 percent tariff in place prior to U.S. President Donald Trump's return to the White House.

A trade surplus of 367 billion yen was recorded with the United States, down 23.0 percent from the previous year as imports rose 3.0 percent to 1.10 trillion yen.

The Trump administration's tariff measures, aimed in part at reducing chronic U.S. trade deficits, will continue to weigh on global economic growth through as trade volumes drop, said Takeshi Minami, chief economist at the Norinchukin Research Institute.

In such a situation, "It is not expected that exports will be a driving force for the Japanese economy for a while," Minami said.

Japanese auto shipments to the United States have been recovering since sharp falls in April and May, but automakers have not passed on the tariff costs to vehicle prices, dealing a blow to their net incomes, he said.

Japan remained in the red with China for the 58th straight month, logging a deficit of 1.08 trillion yen in January.

Exports to the world's second largest economy jumped 32.0 percent to 1.55 trillion yen while imports edged up 0.6 percent to 2.63 trillion yen, hitting a record high.

A ministry official said the government "will closely monitor the impact" of China's tighter controls on dual-use item exports to Japan covering seven types of critical minerals as well as rare metals and electronic devices, imposed in early January amid a diplomatic feud.

Trade with Asian nations, including China, resulted in a deficit of 102.8 billion yen, falling into negative territory for the first time in 12 months, the report said.

A 202.4 billion yen trade deficit was registered with the European Union, marking the 24th consecutive month of red ink, as auto exports to the bloc surged while imports of aircraft parts dived, according to the ministry.

Japan Foreign Visitors: Ideas Later.

Japan's Jan. foreign visitors dip amid China spat, 1st fall in 4 years

Article source:https://mainichi.jp/english/articles/20260218/p2g/00m/0bu/041000c

Article to be deleted after ideas.

Article:

TOKYO (Kyodo) -- The number of foreign visitors to Japan in January dipped 4.9 percent from a year earlier to 3.60 million, the government said Wednesday, as entries of Chinese nationals plummeted after Beijing urged its citizens not to visit Japan due to diplomatic tensions over Taiwan.

The number of visitors fell for the first time in four years since January 2022 during the COVID-19 pandemic, with the Japan National Tourism Organization noting that the decline could also be attributed to the Lunar New Year falling in mid-February this year and a reduction in the number of flights between the countries.

A total of 385,300 people visited Japan from China in January, plunging 60.7 percent from the previous year.

The tensions stem from remarks made in November by Japanese Prime Minister Sanae Takaichi about how Japan might respond to an emergency in Taiwan, a self-ruled island China sees as part of its territory.

But travelers to Japan from many other countries and regions grew due to demand for snow sports tourism, with those from South Korea, Taiwan and Australia hitting record monthly highs. The number of travelers from 17 countries and regions, including the United States and Indonesia, hit record highs for January.

By country and region, 1.18 million people visited Japan from South Korea in January, a 21.6 percent jump from a year earlier, followed by Taiwan with 694,500 people, up 17.0 percent.

Those from Australia increased 14.6 percent to 160,700, while visitors from the United States grew 13.8 percent to 207,800.

Japan Rice Price Situation: Ideas Later.

Japan rice price may dip to 'fair' 3,250 yen per 5 kg by June: expert

Article source: https://mainichi.jp/english/articles/20260213/p2a/00m/0bu/030000c

Article to be deleted after ideas.

Article:

TOKYO -- Japan has been beset by high rice prices for months, with a 5-kilogram bag selling for an average of 4,188 yen (approx. $27) for the week of Jan. 30, according to agriculture ministry figures. Now, an agricultural policy expert has calculated that a truly fair price for that same bag would be 3,250 yen (about $20).

Prices spiked during a rice shortage last year, but they remain high even though the staple has returned to store shelves, and the most recent harvest was said to have been a good one.

Rice policy became a key issue in the House of Representatives election. What price would satisfy both consumers and farmers? The Mainichi Shimbun asked Kimio Inagaki, a research fellow at Mitsubishi Research Institute Inc. and an expert on rice issues, who calculated that "fair" figure.

A 'waiting game' until around June

"In broad terms, prices are on a downward trend, but they aren't falling easily. There's not as much surplus as people think," Inagaki explained while presenting data.

The production of staple rice for 2025 was generally favorable, with a harvest of about 7.47 million metric tons, an increase of 676,000 tons from the previous year.

However, that supermarket average of 4,188 yen per 5 kg for the week of Jan. 30 was down just 95 yen (some 60 cents) from the previous week. Prices have remained in the 4,000-yen range since September 2024.

The annual increase of 670,000 tons may seem reassuring, but Inagaki remains cautious. "Looking at the longer term, there was a total shortfall of about 1 million tons in the crops between 2022 and 2024. Although approximately 660,000 tons of reserve rice was released (by the government), there's still a shortage of 300,000 to 400,000 tons," Inagaki said.

He added, "Demand for the 2025 rice has not been finalized, but it's estimated at 6.97 million to 7.11 million tons, meaning supply would exceed that by 360,000 to 500,000 tons. However, simply seeing a 670,000-ton increase shouldn't bring complacency. There is only about a 200,000-ton buffer, so if growing conditions are poor for the 2026 crop, the situation would be uncertain."

Furthermore, the rice industry apparently cannot easily lower prices due to certain circumstances.

Japan Agricultural Cooperatives (JA) across the country provide farmers an advance payment. But recently, some private traders have offered farmers higher prices than these advance payments to procure rice.

"In response to the rice crisis ... some regional JA branches offered amounts equivalent to twice the usual rate, around 30,000 yen (some $190) per 60 kg, last year. Selling rice purchased at such high prices cheaply would incur losses. So for now, it's a waiting game," Inagaki said.

So will rice prices remain high? Inagaki suggests not. He believes that the distribution side, including supermarkets, will reconsider rice prices between June and August. The indicator of surplus or shortage in the rice industry is private-sector distribution inventories at the end of June, according to Inagaki.

The appropriate inventory level is between 1.8 million and 2 million tons. If stocks fall below that range, prices will increase, and if they exceed it, prices will decrease. "If the 2025 crop is sufficient and the 2026 crop is expected to grow well, distributors and retailers won't want to hold excess inventory, so they will likely lower prices and sell off stock," Inagaki said.

What is the fair price?

The pressing question is what that price should be.

I believe the appropriate price is 3,250 yen per 5 kg, including tax," Inagaki said.

The benchmark takes into account producers' ability to maintain their livelihoods, consumers' financial situations, and competitiveness with imported rice.

Based on data collected by the Mitsubishi Research Institute, Inagaki calculated that if the sale price is 15,000 to 18,000 yen (roughly $95 to $115) per 60 kg for farms of 20 hectares or more, farmers can adequately sustain their operations and livelihoods.

In this scenario, the negotiated price from JA and others to wholesalers would be around 20,000 yen (about $127) per 60 kg, and the retail price, after storage and milling costs, would be approximately 3,250 yen per 5 kg.

Considering trends in imported rice, this amount could be described as within an acceptable range.

Following the 2024 rice shortage, private traders accelerated imports outside the government's tariff-free quota framework. Although a tariff of 341 yen (about $2.20) per kilogram must be paid, imported rice remains cheaper than domestic rice. In 2025, imports surged to 96,834 tons, 95 times the previous year. About 80% was from the United States, often retailing at around 3,500 yen (about $22) per 5 kg.

"This level isn't necessarily appropriate in the long term," Inagaki cautioned. He added, "However, amid current inflation, 3,500 yen per 5 kg might be acceptable for consumers. Domestic rice needs to be priced below that for consumers to choose it. From the perspective of promoting domestic agriculture, 3,250 yen for domestic rice is a realistic price."

Continued production increases are difficult

For 2026 staple rice production, the agriculture ministry has set a guideline of 7.11 million tons, below the 2025 crop. However, as of Jan. 16, the combined production targets set by 40 out of Japan's 47 prefectures totaled 7.25 million tons. Does this suggest strong motivation among producers to increase output?

Inagaki responded, "Most people understand that continually increasing production is difficult."

After a period of increased output immediately following World War II, Japan achieved rice self-sufficiency in the 1960s. Since then, production has become excessive while demand has continued to decline.

"For producers, the fear is a price drop. To increase production, demand must be developed."

While exporting surplus rice overseas may seem viable, Inagaki is skeptical. He stated, "Globally, Japanese rice is too expensive to be competitive. Targeting the gourmet market as a high-end Japanese food is one thing, but if the aim is to have it imported as a staple food by other countries, we would need to assume responsibility for stable supply. I don't think a plan to use exports merely as a buffer would earn trust."

A need for price assurance

After the rice shortage became apparent around the summer of 2024, the Shigeru Ishiba administration, established that fall, advocated for increased production. However, the subsequent Sanae Takaichi administration has shifted to a "production in line with demand" policy. Agriculture Minister Norikazu Suzuki's remark at his inaugural news conference that the government would not "commit" to a rice price also drew attention.

However, Inagaki suggests that "the government should instead clearly indicate a target price."

He added, "Controlling production quantities is meant to stabilize prices. The purpose is to ensure consumers can buy rice with confidence, so a stance of not committing to getting involved in prices is inconsistent. The government should specify a price that allows consumers to buy with a peace of mind and consider compensation for farmers if prices fall short."

Japan Economy Growth: Ideas Later. To be continued.

Japan's economy grows 0.2% in Oct.-Dec., spending edges up, exports weak

Article source: https://mainichi.jp/english/articles/20260216/p2g/00m/0bu/026000c

Article to be deleted after ideas.

Article:

TOKYO (Kyodo) -- Japan's economy grew by an annualized real 0.2 percent in the October-December period, the first expansion in two quarters, as personal consumption eked out a gain despite inflation, while exports fell after higher U.S. tariffs reduced auto shipments, government data showed Monday.

Ideas

The Japanese economy is a very stable economy but because its both a mature economy and seems to be stuck in a somewhat stagnant mode it doesn't grow very much as a 0.2 percent annualized growth indicates.

Annualized growth is just a projection of estimate of what the growth would be for the entire year and 0.2 percent, again, is not that much, but at the same time as the Japanese economy is one of the 5 largest economies in the world that might still be considered a lot of economic activity.

And yes, unfortunately, exports and especially auto shipments to the US decreased as it was not a surprise and has been expected ever since the tariff situation went to effect.

The real surprise might be related to personal consumption or consumer spending increased even through inflation in Japan continues to be a challenge for Japanese households and consumers overall.

Article

In the fourth quarter of 2025, gross domestic product adjusted for inflation increased by 0.1 percent from the July-September period, the Cabinet Office said in a preliminary report. GDP is the total value of goods and services produced in a country.

Ideas

Again as Japan is a very mature economies it doesn't grow that much as it takes a significant amount of resources related to business investments, consumer spending, foreign investments in Japan to grow the economy.

And an increase of Japan GDP of 0.1 percent for the July-September period is about what Japan's GDP has been doing over the last few years, so its no surprise as again, the economy seems to be stagnant or stuck in a rut and can't seem to get out of it, and now with the US tariff situation placing more constraints on the economy is going to take even more resources to get the economy moving again.

Article

The expansion was widely anticipated but turned out to be far smaller than expected. Economists polled by the Japan Center for Economic Research had forecast an annualized real expansion of 1.48 percent.

Ideas

Not to criticize or be negative but economy growth estimates or projections can sometimes be like a crap shoot as you just don't know exactly what's going to happen in the future as you are dealing people and behavior and its a very complicated situation to estimate.

But a forecast of 1.48 percent might have been a little too positive as even the best of times recently hasn't seen that much annualized growth. But at the same time, there is always some kind of pressure to make the estimates, forecasts, or projections sound better than what is really happening as a way to keep the financial markets happy and not go into some kind of nose-dive.

Article

For the whole of 2025, nominal GDP, which shows the size of the economy in current prices, rose 4.5 percent from the previous year to 662.79 trillion yen ($4.3 trillion). In real terms, GDP totaled 590.68 trillion yen, up 1.1 percent, according to the Cabinet Office.

Ideas

As the article suggests you can easily see the difference between nominal GDP growth which includes inflation and real GDP growth without inflation. So inflation in the nominal GPD was about 3.4 percent which is where most articles have suggested inflation has been at in Japan for a long time or ever since the pandemic at least.

And again, an real GDP of 1.1 percent is about where the Japanese economy is at and probably is not going to grow more than that as even at 1.1 percent that might be considered a positive as that is still a lot of economic activity for the 4th or 5th largest economy in world.

Article

In the reporting quarter, private consumption, accounting for over half of the economy, grew by 0.1 percent for the seventh consecutive quarterly rise, bolstered by robust demand for mobile phones and accommodation, though spending on food and automobiles declined, according to the office.

Ideas

Private consumption or consumer spending, while yes, maybe half of the economy, is still not where is should be as it should be even more at about 55 or even 60 percent of Japan's GDP but unfortunately, due to an ageing population and other factors such as inflation and or the fact that traditionally the Japanese are more savers than spenders it hasn't been a able to get to 55 or even 60 percent where is really should be.

As far as mobile phones are concerned it can be suggested that the I phone has taken much of the market share in Japan and maybe Samsung has some market share and yes, even maybe some Chinese mobile phones are making some in-roads in Japan these days.

For accommodations, the huge increase in foreign tourists might be boosting the hotel industry as each month it seems is a new record in Japan for foreign arrivals.

And its no surprise that spending has been in decline due to the increase in supermarket price increases as Japan has to import much of what it needs, including food resources and importers and wholesalers pass-on their increased costs to the next in the supply chain including the final retail customer.

And yes, as the US tariff situation has hit Japan, even the domestic car market is feeling the effects as domestic car dealers might be under pressure to increase prices to make up for the losses in the US, which of course means Japanese consumers might be less than happy about buying a new car now or even leasing a new car now.

Article

Takeshi Minami, chief economist at the Norinchukin Research Institute, said growth in consumption was slow in the quarter, even as companies agreed to offer higher wages for fiscal 2025 following negotiations with labor unions.

Ideas

Personal consumption or consumer spending is always a little slow as Japanese consumers just don't spend like US consumer or more like how US consumers used to spend as even in the US inflation has reduced spending somewhat there too now.

At the same time, higher wage increases in Japan is not going to be a guarantee that it will improve consumer spending in Japan, as it must be remembered that up to 70 percent of the Japanese workforce doesn't work for the large name-brand companies but for small and mid-size companies which don't have the profit margins needed to match the wage increases of the large companies in Japan, As result inflation is still going to be a major challenge for most Japanese households.

Article 

The focus going forward is on whether salaries will further rise in the next fiscal year starting April and boost spending, especially on food and travel, which were areas squeezed by inflation, he said.

Ideas

Yes, salaries will probably increase in April but not to the level that is going to diminish the inflation situation and especially for the 70 percent or so that work for small and mid-size companies as they will continue to struggle with inflation which means their disposable income is going to continue to be challenged and their purchasing power is also going to be compromised in the future.

But to be fair, its going to take more than the 5 plus percent increase in wages, given out last year, to help all Japanese households as again, the small and mid-size companies just don't have the resources needed to match what the large companies have in Japan, which again, not to continue to beat same tune, but consumer spending is not going increase that much unless all Japanese households or all Japanese consumer can get a significant wage increase in April and not just the large companies workers in Japan.

Article

While the year-on-year increase in core consumer prices excluding volatile fresh food could fall below 2 percent as soon as the January-March period, "it is important that consumers truly feel that inflation is easing for them to expand spending," Minami said.

During the reporting period, exports fell by 0.3 percent from July-September, dragged down by weak automobile shipments affected by U.S. President Donald Trump's tariffs, but the decline was milder than the 1.4 percent in the previous quarter.

Ideas

Yes, its possible prices could begin to decrease during the January-March period, but like the article suggests consumers have got to see and feel that its going to last and not just a one month situation and that could take several quarters before Japanese consumers are convinced that prices are finally decreasing as they will see it in their disposable incomes and in the increase in their purchasing power at the the supermarket. 

And yes, its possible the effect of the US tariffs on Japanese auto shipments to Japan has not been as bad as expected, but at the same time its still more than what it was before the US tariff situation took effect or before March/April 2026 when the tariffs were suggested.

And then there is always the idea that demand for Japanese autos might have just hit a mild downturn which happens sometimes as consumers might have taken a short break from buying a new car in Japan. And there are many variables that could be the reason for the weak auto shipments and not just the US tariff situation.

Article

A Cabinet Office official said that the higher tariffs do not seem to be casting a shadow over the broader Japanese economy, including the mindset of businesses and consumers, in the wake of a trade deal struck between Japan and the United States in mid-September.

"The U.S. tariffs impact remain, such as on automakers' profits, but uncertainties are receding over the outlook due to the implementation of the trade deal," the official said.

Ideas

To be continued.......

"But going forward, developments in trade relations outside of Japan and the United States, such as the United States and China or the European Union, could indirectly affect Japan's economy," the official said.

Lower spending by foreign visitors to Japan also contributed to the decline in exports, according to the Cabinet Office. Their spending is counted as exports in GDP data. Imports fell by 0.3 percent.

Business investment increased by 0.2 percent from the previous quarter due to strong demand for semiconductor manufacturing devices and research and development services, while companies also bought more software to make up for labor shortages, the official said.

Housing investment increased by 4.8 percent from the previous quarter following a sharp fall of 8.4 percent.

Nominal GDP increased by 0.6 percent from the July-September period, or at an annualized rate of 2.3 percent.

Japan Real Wages: Updated Feb. 13, 2025.

Japan's real wages fall 1.3% in 2025, down for 4th straight year

Article source: https://mainichi.jp/english/articles/20260209/p2g/00m/0bu/019000c

Ideas

The disposable income of Japanese households continues to go down as wage increases can't seem to keep up with inflation along with the increase in price increases in Japan.

It must be remembered or considered, that up to 70 percent of Japanese workers don't work for the large name-brand companies in Japan but work for the small and mid-size companies which usually don't pay the same wage increases as the large companies as their profits margins are just too thin to try and match the large company wage increases.

And as the disposable incomes keep decreasing for Japanese households that means, after bills are paid, they have less and less money to spend in the economy, which means the economy is not going to grow as most consumers just don't have the needed extra money to spend on things in the economy.

Nominal wages are wages which includes the increase in inflation added on but is deceiving, as it looks good and looks like a consumer has more income but in reality real income is what matters for consumers and households everywhere.

Again, nominal wage increases just show how much inflation as increased as wage earners can see it in their paychecks but it really doesn't do anything for the disposable incomes of consumers as in the end, due to inflation, they actually have less to spend.

Consumer price increases of 3.7 percent might be even noticeable for most consumers who usually are just too busy to notice small increases in prices and if buying at a supermarket after a busy work day or a mother with two children just trying to get in and out of the supermarket, again they might not even notice the price increases.

But ask the low-income groups or the fixed income groups if they notice a 3.7 percent or even a 3.2 percent increase in consumer prices and most likely they can see and feel the increase in prices as they have a much limited disposable income to use in the supermarkets and in the economy, if any at all.

Yes, many Japanese companies at the shunto labor-management negotiations have agreed to increase the wages of their workers, which is of course very good and very needed, but the problem again, the small and mid-size Japanese companies, which might want to do the same thing, just can't do it at the same level, due their thinner profits margins, which means again up to 70 percent of the Japanese work force is still going to effected significantly by the inflation situation in Japan.

To be fair and positive, a 5.39 percent increase in wages is just an average and there might be some that will increase wages even more than that but not to dampen the mood there are going to be some or many that just can't match 5.39 percent as they might want to do and know they need to do it but their profits margins just can't handle a 5.39 percent increase in wage costs.

It has been suggested, in past articles, that many of the large Japanese companies, after the 2008 financial crisis began to sit on large cash reserves due to the possible uncertainty of the global economy at the time, but even today, its is suggested they are still sitting on huge reserves of cash and a increase of 5.39 percent in wages really doesn't seem like that much as they are still being very conservative with their funds.

Part of the problem or challenge is many of the large Japanese companies today are publicly owned which means they are accountable to shareholders who demand and expect a certain level of profit or return in their stock investments and increasing wages beyond 5 or even 6 percent level might be too much for even the large companies if they can't meet the profit projections as that their shareholders expect from quarter or quarter or even year to year.

Yes, private consumption or consume spending might make up to 50 percent of Japan's GDP or domestic product, but if consumers in Japan have decreased disposable incomes due to the continued increase in inflation there no way way consumer spending is going to be close to the 50 percent of GPD as consumer spending might make 45 or 48 or even 49 percent at the very most, and that amount is just not going to increase the growth of the economy in Japan.

It seems, and to be fair, the BOJ is relying heavily on wage increases to help improve economic growth in Japan. And its probably a good idea but again, large companies in Japan are going to do their part but the question mark, as always, is what are the small and mid-size companies going to do or what can they really do if anything to help boost the economy or increase wages enough to boost the economy.

Prices continue to remain high in Japan for several reasons, such as Japan is a resource-poor country which means it has to import much or what is needs as as global prices, due to many factors continue to increase, Japan importers and wholesalers continue to either absorb the price increases and or pass-on the price increases to the next in the supply chain which makes ultimately the final retail customer in Japan.

The other main reason is the variance between the US key rate and the Japan key rate due to the fact that for a period after the pandemic the US central bank kept increasing its key rate to try and decrease inflation while the BOJ kept its key rate almost at zero, suggesting the Japanese economy was just too weak for a rate increase and as a result the large variance between the US rate and the Japan rate as been a significant factor in the Japanese yen being very weak, which increases import prices in Japan.

As noted real wages decreased by 0.1 percent while nominal wages increased by 2.4 percent which means inflation might have increased by 2.5 percent or more from the previous year. 

At the same time, again, it means Japanese household's disposable income or even purchasing power of consumers in Japan continues to decrease which means there is/was less spending in the Japanese economy which again means less or no economic growth for the economy.

Nominal wages might look good or feel good in the short-term but in reality real wages is what matter as it determines purchasing power and the amount of disposable income consumer or households really have too spend in the the Japanese economy.

Have a nice day!

Japan Current Account: Updated Feb. 15, 2025.

Japan logs record current account surplus for 2nd year in 2025

Article source: https://mainichi.jp/english/articles/20260209/p2g/00m/0bu/021000c

Ideas

There are some positives and negatives to why Japan's current account surplus is at a record level for the second straight year. The main reason is at a record again is most likely because of the weak Japanese yen, which allows higher returns on foreign investments and higher prices for Japanese company exports sold in foreign markets.

And there is a negative too such as a weak Japanese yen causes import prices for the Japanese domestic market to be higher than normal, meaning importers and wholesalers have to pay more for products they bring into Japan, and of course they often pass-on their increase costs to the next in the supposed supply chain which might be the final retail customer.

So for the Bank of Japan, which has to sort all of this they have to decide which is best for the Japanese economy, a weak Japanese yen, which increases the current account and at the same time helps Japanese investors in foreign markets and helps large Japanese export companies like Toyota as the weak yen increases their selling price in foreign market or does the Bank of Japan think the domestic economy should be more important and has to deal with the increase in import prices which effects the average Japanese consumer with higher prices.

Japan's current account is like the government's bank account as they use it of course for government spending including a host of budget increases needed to keep the economy moving in the right direction.

The challenge of problem is an increase in the current account should lead to an appreciation in a country's currency, but that for some reason has not happened in Japan or not for a very long time as Japan's currency continues to remain weak.

So what is really going on with both the current account and with Japan's currency situation, as are they really connected or is it only textbook ideas that connect them and is there other real-world situations taking place that has kept Japanese currency weak while Japan's current account is seeing record levels.

Its important to reflect on the idea that Japanese investors are now trading in overseas markets as they are not as loyal to their own country and its the same globally as investors, globally, these days, are looking outward.

And its the same with companies too, as they are not as loyal and maybe never have been and they will invest in any stable economy that can gives them the return they are looking for too just as investors are.

The goods trade, which seemed to take a plunge  of 76.8 percent, while not good, its still not a major problem, as exports increased 2.5 percent but the US tariff situation might have had something to do with the decrease.

And it seems Japan is creeping slowly back into the semiconductor market race as for a long time it was almost completely out of it with both South Korea and Taiwan taking most of the market share.

Japanese food too seems to be making a concerted effort too as their seems to be a continued race these days between South Korea and Japan related to which food is now more popular in foreign markets as both seem to be seeing increases in overseas food shipments.

Unfortunately, Japan seems to be way behind in the services trade area including software, which it seems Japan as all but given up developing any software in its home country.

As such they continue to pay significant royalties to the US and maybe even India these days as again Japan is a hardware focused manufacturing economy and doesn't seem to want to invest in software and or there just aren't any real software drivers in the economy that is making any kind of difference.

Japan seems to have created a new economic driver, which might have started back during the era of the late Prime Minister Abe, when Japan seemed to open up its economy and country to more foreign tourists, and especially to more Asian tourists to come to Japan and spend their money, which now is at record levels.

While foreign tourism might not exactly help boost the economy as much as domestic consumer spending its no doubt helping with economic growth as domestic consumer spending by Japanese households, recently, just hasn't been where it should be for a country which is considered the 4th or 5th largest economy in the world at this time.

Japanese travelers are at a disadvantage as they have to deal with weak Japanese yen which means if they travel to the US, the EU, or even other Asian countries their purchasing power is much less which means they have to spend more, which of course it could be an incentive to not travel overseas.

A drop in the current account for one month should not be that big of challenge as the December holiday period, globally, might have reduced a lot of economic activity as many countries and economies have holidays during the December period.

And at the same time, as the US is one of Japan largest trade partners, again the US tariff situation might have had some affect on the decrease in Japan's current account.

And lets not forget about China too which is one of Japan's largest trade partners and the latest spat between the two governments might have significantly spilled over in to the business and trade arena which might have affected Japan's current account.

The latest spat between the two countries might take some time to resolve as now, for example is the Chinese New Year period and Japan, unfortunately is only ranked 10th in destinations for Chinese tourists when at one time it might been close to being the number one destination for Chinese tourists.

As a result, Japan potentially is going to lose a lot of spending by Chinese tourists, as they have become big spenders as more and more Chinese tourists enter the middle class or even the upper middle class in China and want to travel to overseas places these days.

Have a nice day!

Tokyo Haneda Airports Users: Updated Feb. 17, 2026.

Tokyo's Haneda airport tops 90 million users for 1st time in 2025

Article source: https://mainichi.jp/english/articles/20260129/p2g/00m/0bu/016000c

Ideas

Some of the ideas here might be related to personal experience and some might just be related to ideas about what is happening with Haneda these days.

As I lived and worked in South Korea, I would often travel to Japan, two or three times a year and, when Haneda became more prominent than Narita, Haneda into Japan became my main point of entry since about 2008 onward.

As the increase in the number of foreign tourists at Haneda and terminal three or what before was called the international terminal there number have increased significantly.

For example, in the fall of 2019 I traveled to Japan to Haneda there times and two which were during the 2019 Rugby World Cup, which I wasn't a part of going there and that was a major period of celebration in Japan and everything seemed so alive at that time. 

Haneda, going through immigration was full of foreigners and most of course were talking in their native language such at that time, the group I seemed to be with in waiting were from France as it seemed many airlines all came in at about the same time., which seems to be quite common for or maybe for busy airports its just a normal part of business.

Of course who could have known less than 6 month later the world would be turned upside down with the COVID pandemic.

And then, the unthinkable happened Japan basically closed itself off from the rest of the world and I wasn't able to get back to Japan and Haneda until the winter/spring of 2023 after of course I was able to shoe Japan that I had the required three COVID booster shots.

Before terminal three or the international terminal was built I don't remember ever landing at terminal one, which is related to Japan Airlines or terminal two which is related to All Nippon Airlines or ANA.

Before 2008, I think if I remember correctly, I always landed at Narita international airport and had to take the limousine shuttle but into Yokohama which took about 90 minutes, which from Haneda after Japan and South Korean finalized their shuttle agreement from Seoul Gimpo to Tokyo Haneda the trip to Yokohama from Haneda now only took about 20 minutes.

At that time there still were not a lot of foreign airlines actually using Haneda as most continued to use Narita airports. But around 2010 or 2014 or maybe just a little earlier many airlines were attempting to land at Haneda and because Japan was awarded the 2020 Summer Olympics, many foreign airlines were now competing to arrive at Haneda instead of Narita.

At that time, or around that time, the Japanese government decided to increase the number of countries for visa free travel to Japan as a way to increase foreign tourists into Japan and of course due to Japan being awarded the 2020 Summer Olympics making it much easier for foreigners to travel to Japan.

Japan is still very much a county that uses face to face business meetings for much of its business as meeting with prospective business partners is still a major situation despite the wide spread use of Zoom these days.

And airline travel to other parts of Japan is still very important and the two major airlines, JAL and ANA benefit significantly from business travel both domestically and internationally too.

Chinese tourists coming to Japan was always very robust, but as usual, due to Japan taking one step forward and ten steps back related to things said or done, as usual Chinese tourist, which used to be the largest tourism group going to Japan has significantly decreased and as now its the Chinese New Year period the numbers going to Japan are way down from last year or even the year before.

And yes foreign tourists from Hong Kong and Taiwan continue to go to Japan and with the Chinese New Year, now in full progress the numbers might be increasing as they, for whatever reason, don't exactly follow what Beijing says these days.

But while tourists from China might be way down those from South Korea seem to be way up as though, there are always historical and diplomatic friction, South Korean tourists seem dot be increasingly going go to Japan the last few years.

And as Japan is losing out on Chinese tourists going to their country South Korea seems to be getting more and more Chinese tourists the last few years.

Haneda international airport is in the central part of Tokyo and there just isn't much room for expansion and even maybe a new runaway it just isn't possible. As it seems Haneda might be at its maximum at this time, but maybe they can learn from Chicago or Heathrow in London how to squeeze a few more flights into an already overcrowded arrival situation.

And it seems, maybe many airports are the same, there are not a lot of international flights departing or leaving after 12 midnight as it seems everything seems to shut down at Haneda after 12. There are more flights being added from 12 to 6 am but there aren't a lot of shops open and transportation is very limited at Haneda from from 12 to 6 as maybe some tourists might have to wait until after 6 or later to get a shuttle bus or even a taxi into other parts of Tokyo.

While Narita airport in Chiba might be expanding, for most foreign travelers in and out of the Tokyo area just getting to Tokyo from Narita by the shuttle limousine bus service, due to traffic concerns could take up to an hour

Haneda is much more convenient and less expensive if you are lucky enough to get a flight to Haneda and not Narita.

That's not to say Narita is not a good airport, as it is very good but its just a little out of the way compared to Haneda and once you experience Haneda in central Tokyo and get to your hotel destination somewhere in Tokyo there is no comparison which is the better alternative.

Have a nice day!