Japan’s trade deficit at $9.5 bn in September
21 Oct 2013
Japan's trade deficit in September came as the 15th deficit in a row, the longest stretch on record, in what is seen as apparent structural change in the economy and uncertainties about global growth.
The trade balance showed a deficit of ¥932.1 billion ($9.5 billion) in September, making the run of monthly deficits the longest since January 1979, when the data were first compiled in the current format, according to finance ministry figures released today.
It also came as the largest deficit ever for the month of September.
The earlier record of 14 straight months stretched between July 1979 and August 1980 following the 1979 energy crisis.
The latest deficit has been attributed to several factors, with the first being the country's dependence on fossil-fuel imports.
With most of the country's nuclear plants shut following the 2011 Fukushima nuclear accident, fossil fuels now account for around 90 per cent of Japan's energy needs as against 60 per cent before the accident.
Tensions in Syria had worsened the situation, keeping the import price of crude oil high, around $110 a barrel, in September.
The value of all imports grew 16.5 per cent on year, while the value of exports rose by 11.5 per cent.
The yen had weakened by almost 25 per cent against the US dollar over the past year, while making Japan's exports cheaper overseas but increasing import costs.
Imports of oil and gas accounted for nearly a third of the total but were down 1 per cent as oil prices moderated. Imports of soybeans and other food and machinery shot up at double-digit rates.
Rising shipments of vehicles, iron and steel, rubber, chemicals and machinery boosted exports.
The US continued to be Japan's largest export destination, at 1.11 trillion yen ($11.3 billion), even as imports totaled 665 billion yen ($6.8 billion). The resulting 533 billion yen ($5.4 billion) surplus was up 25 per cent from a year earlier.
However, Japan's trade deficit with China surged 87 per cent to 620 billion yen ($6.3 billion) with imports of such items as cellphones and solar panels surging 31 per cent to 1.68 trillion yen ($17 billion) while exports rose 11 per cent at 1.06 trillion yen ($10.8 billion).
Meanwhile, shipments to its biggest trade partner, China, were up 11.4 per cent to 1.06 trillion yen in September even as imports from China rose 30.9 per cent to 1.68 trillion yen.
