Japan trade surplus shrinks
TOKYO: Japan’s current account surplus shrank in June for the first time in three months as exports were dragged down by weaker overseas demand.
The surplus on the current account, the broadest measure of trade in goods and services, fell 23.5% in June from a year ago to 1.1006 trillion yen (US$9.24bil), the Ministry of Finance (MoF) said yesterday.
The trade surplus fell 24.6% to 1.0302 trillion yen, with exports roughly flat and imports rising 11.8%.
Exports totalled 4.2054 trillion yen in June compared with 4.2058 trillion yen a year ago, showing a zero percentage decline, which the ministry said was the first in 15 months. But it was not too pessimistic about the outlook.
“The global economy shows signs of being on the mend, so exports may not stay in negative territory for long,” an MoF official told reporters.
Imports stood at 3.1752 trillion yen versus 2.8391 trillion yen a year earlier.
Structural changes in industry, such as Japanese companies moving production to China, may also be affecting the current account figures, the official added.
The current account surplus also shrank in the first six months of 2003, falling 8% from January–June a year ago to 7.2425 trillion yen.
The trade surplus for the six-month period was down 6.7% at 5.3638 trillion yen, with exports up 4.2% at 25.0525 trillion yen and imports rising 7.6% to 19.6887 trillion yen, a record high. – Reuters
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