Japan monthly trade deficit hits record



REUTERS

Published — Thursday 21 February 2013

Last update 21 February 2013 3:15 am

| نسخة PDF Print News | A A

TOKYO: Japan’s trade deficit widened to a record in January as energy imports rose more than expected, highlighting one of the risks of seeking to revive the country’s export engine through pursuing policies that could weaken the currency.
The trade deficit reached a record 1.6 trillion yen ($ 17.1 billion), larger than a median forecast for a 1.38 trillion yen deficit.
The data comes as new Prime Minister Shinzo Abe works on plans to combine aggressive monetary policy easing with fiscal stimulus to shift the economy into a higher gear and end nearly 20 years of mild deflation.
“Trade deficits could continue for much of this year, if not into next year,” said Norio Miyagawa, senior economist at Mizuho Securities Research & Consulting.
“This shows that on a net basis money is leaving the country. We need to turn this around by increasing our earnings power from exports. A weak yen will help, but it won’t solve all our problems.”
Since November the yen has tumbled 16 percent versus the dollar as expectations have grown for aggressive fiscal and monetary policy measures — making exports more competitive but
increasing the cost of imports priced in dollars.
Exports rose 6.4 percent in January from a year earlier, more than the median estimate for a 5.6 percent annual increase.
It was the first increase in eight months.
Exports to China, the major destination for Japanese shipments, rose 3.0 percent from a year earlier.
Imports jumped 7.3 percent in January from a year earlier, well above the median estimate for a 1.6 percent annual increase, as Japan imported more fossil fuels to make up for the
closure of almost all of its nuclear power plants.

Since taking office in December, Abe has compiled a stimulus package that is the country’s biggest spending push since the global financial crisis in an effort to kickstart the economy, which has contracted for the past three quarters.
Next week, Abe is expected to nominate a BOJ governor and two deputy governors, giving him the opportunity to shift the central bank toward the aggressive easing that he favors.

What's happening around Saudi Arabia

RIYADH: An explosion damaged several cars at a residential area in the national capital on Monday, but there were no injuries, police said.A spokesman for the Riyadh regional police told Saudi Press Agency (SPA) that security patrols received a tip f...
ABHA: Gov. Faisal bin Khalid bin Abdulaziz, Asir region, ordered the formation of a working team in Bisha to address the status of the battered woman who recently shared her suffering on social networking sites.Mohammed bin Sabrah will head the team,...
MADINAH: Madinah Gov. Prince Faisal bin Salman launched a series of charity and developmental projects during his recent visit to Khaibar Province at costs exceeding SR100 million.They included municipal projects at Khaibar, Al-Salsah and Al-Ashash M...
MADINAH: Pilgrims spend the most beautiful moments in the Prophet’s Mosque, where they pray in Riyazul Jannah (garden from the gardens of paradise) and get to greet the Prophet, peace be upon him, said the Omani pilgrim, Ahmed Nasser. “Such deeds giv...
MADINAH: A member of the Senior Scholars Council, Dr. Abdullah Al-Manieh, has called for the establishment of women’s departments at the Islamic University in Madinah in line with other universities in the Kingdom.“The Muslim woman has had her own st...
JEDDAH: The euphoria over the sudden resumption of call facility on WhatsApp in the Kingdom on Saturday was short-lived as the service was not widely available the following day. A large number of users of the popular messaging service, barring a few...
JEDDAH: Work on developing and modernizing the Kingdom’s 27 airports is ongoing and is expected to be completed within the next five years, according to Sulaiman Al-Hamdan, president of the General Authority for Civil Aviation (GACA).“Our goal is tha...
RIYADH: Saudi Arabia and South Korea are set to widen cooperation in the health care sector following a joint road show which underlined potential areas of cooperation and showcased world-class health facilities of that country. The event, titled “Ko...
RIYADH: The Saudi Green Building Forum (SBGF) believe that about fifty percent of the ongoing eco-friendly green building projects across the Kingdom are facing delays for not fulfilling criteria.Faisal Alfadl, secretary-general of the forum, on Satu...
AL-UQAIR: The low-quality of education in the Kingdom arises from many factors. Included among these are the complexity of the system itself, unclear educational vision, non-professional education development programs, and instability due to changing...
JEDDAH: Security authorities in Jeddah called a citizen and his wife for interrogating with them on the charges of beating their Eritrean housemaid.Makkah Police media spokesman, Col. Dr. Atti bin Attiah Al-Quraishi, said: “The Safety Center of Jedda...
AL-UQAIR: The Saudi Commission for Tourism and National Heritage (SCTNH) has deposited SR600 million with local banks for the Al-Uqair Development Company in Al-Ahsa, SCTNH President Prince Sultan bin Salman has said.“Saudi citizens have some equitie...
JEDDAH: A number of preachers have been arrested for using sermons to promote political ideologies, said Fahad Sulaiman Al-Khalifa of the Ministry of Islamic Affairs.He said the issue was not widespread, and the ministry reiterated that the sermon sh...
JEDDAH: A Saudi military analyst and retired brigadier, Ibrahim Al-Marie, has called for the compulsory drafting of young Saudis into the military.This is, he said, not only because the Kingdom is facing regional threats, but because of its benefits...
RIYADH: Advertisement campaigns for fake TOFEL and ILET certificates are being monitored on social media websites in an effort to halt this illegal practice. The certificates originate from Jordan and can be obtained by clients for a sum of SR2,000,...

Stay Connected

Facebook