Japan Logs Record Trade Deficit for 1st Half

Japan has posted the biggest ever trade deficit for the first half of a fiscal year in the wake of the March 11 quake and tsunami, the government reported Monday. The the most recent data shows export recovery continuing through September.

The trade deficit of 1,666.6 billion yen ($21.8 billion) for the April-September period is not only the first deficit in two and a half years but also the biggest deficit for a first half of the fiscal year since the government began collecting such data in fiscal 1979.

Exports slumped 3.8 percent during the period to 32,810.4 billion yen ($430.6 bil.) on falling shipments of vehicles, semiconductors and other electronic parts to the United States, Asia and Europe, reported the Finance Ministry.

Imports surged 12.1 percent to 34,477.1 billion yen ($452.5 bil.) due to more oil and gas consumption after the closure of many nuclear power plants for safety testing following the crisis at the Fukushima 1 plant.

Exports to the U.S. fell 8.1 percent to 4,796.5 billion yen while imports from the U.S. grew 0.1 percent to 3,026.1 billion yen. Japan’s exports to China, its top trading partner, slipped 1.6 percent to 6,451.7 billion yen while imports rose 6.6 percent to 7,302.0 billion yen.

In September exports rose 2.4 percent from a year earlier to 5,980.7 billion yen for the second straight monthly increase, a sign of continuing recovery from disruptions to the supply chains for automotive and other industrial production. Growth was seen both in auto shipments to Europe and auto parts shipments to China.

Shipments of semiconductors and other high-tech components have been declining, suggesting a slowing of production, especially in Asia’s emerging economies.

Imports rose 12.1 percent to 5,680.3 billion yen, the 21st consecutive monthly gain, on burgeoning demand for alternative energy resources to nuclear power. The net result for September was a surplus of 300.4 billion yen ($3.9 bil.).