The Avanti Group
Japan’s trade deficit nearly doubled last month as a weaker yen sent the country’s energy import bill soaring, despite a brightening export picture, official data showed yesterday.
The finance ministry reported a bigger-than-expected deficit of 1.024 trillion yen ($10.5 billion) for July, from 528.55 billion yen ($5.4 billion) in 2012. That was the 13th straight month of shortfalls in what is the longest deficit spell in more than three decades.
The gap came even as the value of exports jumped 12.2 percent in July from a year earlier, powered by strong demand in the United States and China, as well as Europe. “The deficit was much bigger than expected because the weak yen sent costs of energy imports up and contributed to the larger deficit,” said Hideki Matsumura, analyst with Japan Research Institute.
“But the data showed that exports are on course to recovery thanks to the weaker yen and strong demand in the US market.