Japan’s trade deficit rises to record high

February 20, 2012

Japan’s trade deficit has ballooned to a record high Y1.48 trillion ($A17.27 billion) in January, the biggest in the three decades that such data became available, the government says.

The Ministry of Finance numbers on Monday highlight Japan’s surging imports of fuel after the March 11 earthquake and tsunami sent the Fukushima Dai-ichi nuclear plant into multiple meltdowns. As public worries grew, nearly all 54 reactors were stopped for inspections.

Resource-poor Japan imports almost all its oil. Until the Fukushima disaster, the country had trumpeted nuclear technology as a safe and cheap answer to its energy needs. Since the disaster, Japan is importing more oil and natural gas as utilities boost thermal power generation.The growing trade deficit is an unusual turn of fate for Japan, which had been criticised by its allies, including the US, for decades for racking up huge surpluses and for allegedly carrying out unfair trade.

Japan’s trade deficit with neighbouring China, its biggest trading partner, has also been growing recently.Japan’s overall trade deficit in January was the biggest since officials began compiling comparable figures in 1979.

Exports declined 9.3 per cent in January from the same month last year, particularly in computer chips and electronic parts. Imports in January grew 9.8 per cent on year.

AP