Japan Sees Trade Deficit in 2011, March Quake May Have Long-Term Effect
As a result of the catastrophic earthquake in March of 2011, Japan posted its first annual trade deficit since 1980.
The nation saw a trade deficit of $32 billion as total exports fell 2.7 percent and imports rose 12 percent.
Exports alone fell 8 percent in the month of December 2011 due to weakening demand for some of its electronic parts. The lower demand is a result of poor economic conditions in Europe and the strong yen. Imports rose 8 percent in December, marking the third consecutive month which the country has experienced a deficit.
The substantial import growth reflects the country’s newly increasing demand for fuel and energy sources while its nuclear plants remain shutdown. The plants are not expected to open any time soon.
This three month trend is a big difference to what Japan experienced in the past. The country’s government will most likely be looking to lower the value of the yen in an attempt to drive up export growth.
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The nation saw a trade deficit of $32 billion as total exports fell 2.7 percent and imports rose 12 percent.
Exports alone fell 8 percent in the month of December 2011 due to weakening demand for some of its electronic parts. The lower demand is a result of poor economic conditions in Europe and the strong yen. Imports rose 8 percent in December, marking the third consecutive month which the country has experienced a deficit.
The substantial import growth reflects the country’s newly increasing demand for fuel and energy sources while its nuclear plants remain shutdown. The plants are not expected to open any time soon.
This three month trend is a big difference to what Japan experienced in the past. The country’s government will most likely be looking to lower the value of the yen in an attempt to drive up export growth.
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