In 2024, Japan's digital trade deficit soared to a record ¥6.65 trillion, more than tripling since 2014. This deficit encompasses international transactions in digital-related services, including payments for music and video distribution, cloud computing services, and online advertising fees. The surge is attributed to the dominance of global IT giants like Microsoft and Google, leading to faster growth in imports compared to exports in Japan's digital sector. Despite an overall current account surplus of ¥29.26 trillion, bolstered by higher dividends and interest from abroad, the substantial digital trade deficit highlights challenges in Japan's digital economy.
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Japan’s digital trade deficit in 2024, reaching a record ¥6.6 trillion, is a significant and revealing indicator of the country's evolving economic landscape, especially in the digital economy. The deficit has tripled since 2014, underscoring the increasing reliance on international digital services like cloud computing, online advertising, and music and video streaming. It also highlights Japan's growing dependency on foreign tech companies, particularly global IT companies like Microsoft and Google. Those services dominate the digital landscape. This increasing digital trade imbalance results from higher imports in digital-related services, which are outpacing exports in Japan’s digital sector. Finally, Japan is supported by higher dividends and interest from abroad.
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