Innovation Update
Japan Posts Second Trade Deficit in 3 Months
The Associated Press
11/20/08 - 01:14 AM EST
TOKYO -- Japan posted a second trade deficit in three months, showing that the country's mighty export machine is suffering as demand for autos and electronic gadgets declines amid a sharp global downturn.
The world's second-largest economy is dependent on exports to drive growth, and with scarce natural resources must import necessities like oil, coal and natural gas. Japan's economy slipped into recession in the third quarter.
In October, falling exports and higher imports combined to drag the country's trade balance into a deficit of 63.9 billion yen ($666 million).
Exports fell 7.7% from a year earlier to 6.93 trillion yen ($72.2 billion), as plunging sales of cars and semiconductor components to the U.S., Europe and elsewhere overwhelmed gains in steel.
The 15 nation euro-zone is in a recession and economists suspect the same of the U.S., the world's largest economy, though official data has yet to confirm that.
Japan's imports rose 7.4% to 6.99 trillion yen ($72.8 billion), but were lower than in recent months as fuel prices eased.
In August, the country posted a 332.1 billion yen deficit, which swung to an 88.5 billion yen surplus in September.