GOOGL - Amazon Prime And YouTube Premium Linked To Japan's Rising 'Digital Deficit' Putting Pressure On Yen Say Experts | Benzinga
Experts believe that Japan’s increasing dependence on foreign digital services like Amazon (NASDAQ:AMZN) Prime and YouTube Premium by Google Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) is contributing to a rising “digital deficit,” potentially pressuring the yen’s value.
What Happened: Japan’s heavy reliance on foreign digital services is causing a significant imbalance in its digital trade, Nikkei Asia reported on Monday. This imbalance, termed the “digital deficit,” is feared to contribute to the long-term depreciation of the yen against the dollar.
Japan’s digital deficit, which includes fees for digital advertising and intellectual property royalties, surpassed the overall services deficit in 2023, reaching 5.5 trillion yen ($34 billion). The deficit continues to grow, with a 14% increase recorded from January to May this year.
Experts suggest that the digital deficit is a major factor dragging down Japan’s services trade balance. The deficit exerts a steady downward ...