Trade balance
In the last decade, Japan managed to downsize the deficit in goods and service trade on its balance of international payments (BoP), facilitated by the country’s growing export position for physical goods. While the trade deficit on commercial services fluctuated in the last decade, merchandise remained the main position of the trade balance. Major commodities exported from Japan included durable goods such as electrical and general machinery as well as transport equipment. Taking advantage of the Japanese automotive and machinery industries' favorable reputation in the global market and the location of leading trading businesses’ headquarters close to strategically convenient logistic hubs within the country, large metal and electronic corporations are contributing significantly to the export position of Japan.Meanwhile, non-durable goods make up a significant share of the import market owing to the importance of mineral fuels to the domestic energy industry. While the country reduced its dependency on fossil fuel imports through the operation of nuclear power plants in the last decades, a lack of oil reserves within its borders and hesitation towards nuclear energy following the 2011 Great East Japan Earthquake impeded further efforts to become more self-sufficient.
