Japan's trade deficit hits record on weak yen, higher energy costs
Nuclear plant shutdowns and higher import costs drag down the third-biggest economy
Japan reported a record annual trade deficit last year as energy shipments and weakness in the yen pumped up the nation's import bill.
The shortfall was 11.5 trillion yen (HK$871 billion), almost double the previous year's 6.9 trillion yen, a finance ministry report showed in Tokyo yesterday. Imports rose 25 per cent in December from a year earlier and exports gained 15 per cent, leaving a monthly deficit of 1.3 trillion yen.
A record 18 consecutive monthly deficits show how nuclear plant shutdowns, higher import costs, and limited gains in export volumes are dragging on Prime Minister Shinzo Abe's efforts - known as Abenomics - to sustain momentum in the world's third-biggest economy.
Goldman Sachs Group said yesterday that monthly shortfalls of about one trillion yen may persist "for some time".
"It's hard to anticipate when Japan can emerge from trade deficits at this point," said Takeshi Minami, chief economist at Norinchukin Research Institute.
It’s hard to anticipate when Japan can emerge from trade deficits
"If a trade deficit as a result of high energy import costs makes Japan look like a high-cost country, it may discourage moves by companies to have production centres in Japan and undermine Abenomics."