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Japan
back in deficit as imports rise
Japan
slipped back into a trade deficit in July, as exports languished and
imports of gas and generating equipment surged, reports the Ministry
of Finance.
22
August, 2012
The
deficit was 517.4 billion ($8 billion) in July, according to
provisional trade figures. That compares with a 69.7 billion surplus
a year earlier and a modest surplus of 62 million in June of this
year.
Exports
fell 8 per cent from a year earlier in July to 5.3 trillion, while
imports rose 2 per cent to 5.83 trillion, the ministry said.
Japan
has managed to eke out small trade surpluses in some months over the
last year, but reported a record annual trade deficit for the fiscal
year that ended in March.
The
strong Japanese yen has hurt exports, as have disruptions caused by
last year's earthquake and tsunami disaster in northeastern Japan,
which hampered production of vehicles and electronics.
Exports
have also suffered from weaker European demand due to the debt
crisis.
A
look at the figures for July shows sharp drops in exports of consumer
electronics, customarily a mainstay for Japan's economy.
Japan
posted its biggest half-year trade deficit ever in January-June, 2.9
trillion, as exports weakened and fuel imports soared to keep power
going despite shutdowns of most of the country's nuclear reactors.
Just to clarify - this is Japan's worst deficit ever.
From the Guardian
Japan
suffers record trade deficit
Japan
posted some alarmingly weak trade data overnight, fuelling fears that
the eurozone crisis is now having a severe impact on the world
economy.
The
Japanese trade gap with the rest of the world hit 517.4bn yen, or
£4.1bn, last month, a record deficit for a July.
This
was driven by a 25% slump in exports to the European Union compared
with July 2011, while imports from the EU jumped by over 10%.
Another
reason to fret - Japan's exports to China fell by 11.9% during July.
Mike
van Dulken, head of research at Accendo Market, commented:
Japanese
trade data showed a plunge in July exports, signalling continuing
global world weakness, most notably from neighbouring China, but also
from the US and Eurozone where growth remains hampered by a slow
recovery/double-dip recession.
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