Japanese deficit is the first for 13 years

By HUGO DUNCAN FOR THE DAILY MAIL
Updated:

Japan today posted a current account deficit for the first time in 13 years after exports plunged.

The finance ministry said the shortfall  -  the difference between imports and exports  -  stood at a record 172.8 billion yen in January.

Exports crashed 46.3 per cent to 3.28 trillion yen because of tumbling overseas demand for Japanese goods such as cars. Imports declined 31.7 per cent to 4.13 trillion yen.

Stormy times: Japan has posted a current account deficit

Stormy times: Japan has posted a current account deficit

The shortfall was far bigger than the previous record of 25.6 billion yen in January 1996.

'We incurred the current account deficit due to a plunge in exports,' said ministry official Michito Yamagami.

'Our exports to key regions were all down sharply due to the deteriorating global economy.'

Exports to the US fell 52.9 per cent from a year earlier, Asia-bound shipments shrank 46.7 per cent and trade with the EU slid 47.4 per cent.

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