TOKYO: Japan’s trade deficit plunged nearly 60 percent in January from a year before as exports rose and its import bill for oil and gas dropped thanks to sharply lower crude oil prices.
The deficit of 1.18 trillion yen ($9.9 billion) was better than some forecasts.
Exports surged a stronger-than-expected 17 percent from the year before to 6.1 trillion yen ($51.7 billion), powered by strong shipments of vehicles and machinery. Imports fell 9 percent to 7.32 trillion yen ($61.6 billion), with a nearly 25 percent drop in imports of oil and gas.
Costs for imports of other commodities have also fallen, both due to lower demand and slumping prices.
The deficit was nearly 2.8 trillion yen in January 2014.
Japan’s long era of trade surpluses ended after its nuclear plants were shut down following the disaster at the Fukushima Dai-Ichi nuclear power plant in 2011 and imports of oil and gas jumped to make up for lost generating capacity. January was the 31st straight month of deficits.
Strong monetary stimulus aimed at spurring inflation has caused the Japanese yen to fall, as the US dollar has gained strength. But until recently the weaker yen had increased production costs but done little to boost exports by Japanese manufacturers, who have shifted a large share of their production overseas.
Stronger growth in the US and other major markets appears to have been a larger factor in the export recovery.
Japan logged double-digit increases in exports of machinery, electronics and vehicles in January. That contributed to improved manufacturing output, which helped the economy hobble out of recession late last year, with a 2.2 percent annualized rate of expansion in October-December.
But economic growth for the year was flat after a sales tax hike in April sapped demand, and overall net exports continued to drag on growth.
Still, a stronger US economy has helped.
Japan’s exports to the US rose 16.5 percent in January while imports fell 1.4 percent, leaving a trade surplus of 545.4 billion yen ($4.6 billion).
But exports to China, whose economy has been slowing, jumped nearly 21 percent from a year earlier, as imports fell almost 7 percent, leaving a trade deficit of 736.4 billion yen ($6.2 billion), down almost 30 percent.
Meanwhile, a strategy of balancing Japan’s trade and investment in China with closer economic ties to the rest of the region is paying off as exports to other East Asian countries and Southeast Asia surge.
Japan trade deficit sinks 58% on lower oil prices
Japan trade deficit sinks 58% on lower oil prices
RLC Global Forum highlights role of Saudi youth in retail digital shift
RIYADH: Saudi Arabia’s young and highly digital population is reshaping how the Kingdom’s retail sector adopts new technologies and artificial intelligence, advancing faster than many global competitors, industry leaders told Arab News.
Speaking on the sidelines of the RLC Global Forum in Riyadh, executives told Arab News that the intersection of a youthful population and strong investment in AI is driving a shift in the industry’s priorities.
From understanding consumer behavior to leveraging the Kingdom’s growing status as a global AI leader, Saudi Arabia is becoming as a unique destination for the retail sector to thrive, learn, and evolve in the digital sphere.
Abdullah Al-Tamimi, CEO of commercial real estate company Hamat Holding, told Arab News that the firm is keen to analyze and understand consumer behavior, with a particular focus on the younger generation as a key part of that insight.
“Actually, it’s a big part of our day-to-day operation,” he said, adding that the company invests heavily in understanding customer needs and behavior and works to correct any missteps.
Al-Tamimi emphasized paying close attention to small details, noting that younger consumers are especially sensitive to the overall experience and “deserve that we work around the clock in order to improve it.”
He added that this focus “can be a competitive advantage for Saudi Arabia as well.”
Al-Tamimi said that as the younger generation grows accustomed to new technology shaping retail customer experiences, Hamat Holding is leveraging AI to enhance them further.
“We started a couple of initiatives improving digitalization,” he said, adding that the company sees digital tools as a way to enhance its work by automating day-to-day operations and allowing teams to focus on bigger-picture and more complex tasks.
While the firm has expanded its use of technology, he stressed it has not replaced human workers, emphasizing the continued importance of human capital for creativity and interaction. “AI is a big part of our strategy,” Al-Tamimi added.
Amit Keswani Manghnani, chief omnichannel and AI officer at luxury goods retailer and distributor Chalhoub Group, told Arab News that bridging a younger customer base with continuous digital development is key to advancing the Kingdom’s retail strategies.
On Saudi Arabia’s demographics, he said: “We look at 2030 as really building products which serve especially the younger population, which is growing and very digitally savvy.”
Manghnani underscored the unique characteristics of the Kingdom’s retail market as a tool for developing effective products and customer experiences.
“So it’s very digitally savvy, much more than in other markets,” he said, noting that e-commerce penetration is rising not only through online purchases but also via digital catalogs that drive in-store visits.
Manghnani said investment is focused on making products more digitally accessible and easier to use, while strengthening customer service to meet the expectations of what he described as a demanding but welcome consumer base. “Service excellence, digital — all these things together are how we are tapping into the younger population, which again is extremely savvy.”
Manghnani reinforced Al-Tamimi’s point that the Kingdom holds a competitive advantage, citing the speed at which its retail and technology industries are aligning.
“As a market, we’re tending to see the adoption of digital,” he said, referring to AI, data and other forms of digital interaction, adding that these tools are increasingly being combined.
He noted that this market is moving “much quicker than the other markets.”
The two-day RLC Global Forum brought together more than 2,000 global leaders, policymakers, and innovators from over 40 countries over the two-day event to define the next chapter of growth across retail, consumer, and lifestyle industries.
