$ 32 billion trade deficit in 2011, Japan

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$ 32 billion trade deficit in 2011, Japan
Source: (agencies)
Date: January 26, 2012

Japan’s trade balance recorded a deficit of 2.4 trillion yen to 32 billion dollars over the past year, the first annual trade deficit to Japan 31 years ago.

This was due to increased imports and declining exports against the backdrop of the devastating earthquake and tidal waves (tsunami) that struck northeastern Japan on March 11, 2011. A report by the Japanese Ministry of Finance: The merchandise trade balance recorded a deficit for the first time since 1980.

It is the second largest trade deficit recorded in the country since records began in the relevant economic data in 1979. Analysts said the yen’s rise and commodity prices led to the deterioration of business conditions around Japan, and if this continues, the country will suffer from a chronic trade deficit.

Exports and imports

Japan’s exports fell last year by 2.7% to 65.6 two billion due to rising value of the yen against other major currencies and the global economic slowdown and the disruption of economic activity in Japan because of the earthquake disaster. At the same time, imports increased by 12% to 68 trillion yen in the same period. The Ministry of Finance said Japanese exports continued to fall during the last December for the third month in a row.

Monthly exports fell by 8% from December 2010 to 5.62 trillion yen, while imports increased by 8.1% to 5.83 trillion yen during the same period. Japan’s exports fell to other Asian countries by 3% to 36.7 two billion or about 56% of the total Japanese exports.

Japanese exports fell to China’s largest trading partner of Japan by 1.4% to 12.9 last year, two billion, equivalent to 19.7% of total exports. At the same time increased Japan’s exports to the EU 0.1% to 7.62 trillion yen, while exports fell to the United States by 3.4% to 10 trillion yen.

Significant problems

The Bank of Japan may reduce earlier forecast of growth in the country in fiscal years 2011 and 2012, amid signs of a halt of recovery, while the government expected to exceed $ 210 billion deficit in fiscal year 2020. It forecast that the decline in the growth of GDP in fiscal 2011, which ends in March to 0.4% to 2% rise in the next year, compared to previous expectations of 0.3% and 2.2% respectively.

The bank said: that the Japanese economic activity has stalled as a result of the effects of slowdown in overseas economies and the high yen which will continue at the present time.As well as the government announced it may not reach its goal of balancing the budget by 2020 even if it doubled the rate of consumption tax to 10% in 2015.

The government issued its forecast long-term fiscal it was found that the deficit will exceed 16 trillion yen, $ 210 billion in fiscal year 2020 and this application because the consumption tax rate of 10% half a year has been postponed until October 2015 Add to the high cost of living.