Monday, November 28, 2011

Japan trade deficit october 2011

World Economic outlook - Japan trade deficit october 2011 : Japan's trade slipped back into deficit territory in October after recording a surplus the previous month, The Finance Ministry said in a preliminary report on November 21.

Japan posted a trade deficit of 274 Million Yen. Exports were down for the first time in 3 months, a 3.7-percent decline from a year earlier, while imports rose 17.9 percent.

Delayed shipments of semiconductors and other electronics components led the decline in exports. Adding to the strong yen and supply chain disruptions due to the Thai floods, a slowdown of the global economy is creating a drag on Japanese exports. Higher crude oil prices led the rise in imports, along with an increase in imports of liquefied natural gas for power generation to make up for halted nuclear power plants.

Economists warn that the balance of trade in goods could stay in deficit for the coming months, such that the economy will rely even more on any stimulus effects from a new Y12.1-trillion extra budget that parliament is expected to pass later Monday.

Japan's trade balance came to Y273.8 billion in October, the first deficit in two months and short of economists' forecast for a Y55.6 billion surplus, Ministry of Finance data showed.

High global oil and gas prices caused Japan's imports to surge a more-than-expected 17.9%, the 22nd straight monthly rise. Exports fell 3.7% on year, more than double economists' expectations. That followed two months of modest growth, and came as demand in the U.S., the European Union and Asia all fell, the data showed.

Also boding ill for Japan's hopes for developing economies, exports to China--Japan's largest export market--dropped 7.7% on year, the first decline in three months.

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