Japan’s trade deficit hits record $78 bn in 2012

Japan's trade deficit in 2012 reached a record ¥6.93 trillion ($78.3 billion), as exports fell for the seventh straight month in December while fuel imports surged, according to the provisional figures released by the finance ministry yesterday.

Japanese exports have been hit by the slowdown in the global economy and a row with China, its largest trading partner, over the sovereignty of certain islands in the East China Sea, as well as a strong yen.

Although December exports fell 5.2 per cent, the trade deficit for the month narrowed to ¥641 billion from ¥955 billion in November.

Its annual trade deficit is the highest in over three decades and 170 per cent higher than last year's ¥2.6-trillion deficit.

Energy imports surged 34 per cent to ¥24 trillion last year due to the shutdown of nuclear power plants on mounting concerns over nuclear energy following the Fukushima disaster in 2011.

Exports to China slumped 10.8 per cent to ¥11.5 trillion, while those to the European Union dived almost 15 per cent during the year.