Japan ran a record trade deficit in August as imports showed high fuel costs, the continued decline in the yen, and the economy’s vulnerability to external price pressures.
Imports have risen 49.9 percent since August, driven by costs of crude oil, coal, and liquefied natural gas (LNG), causing the trade deficit to rise to 2.8173 trillion yen ($19.71 billion), the largest on record.
The widening trade deficit underscores the fragile nature of Japan’s economic recovery, which has so far remained largely intact despite import payments aggravated by firms’ slumping the yen to a 24-year low and rising global slowdown expectations.
The trade deficit in August continued for the 13th consecutive month compared to the same period of the previous year.
Over the past six months, the yen’s decline of nearly 20 percent added to higher import costs.
By region, exports to China, Japan’s largest trading partner, rose 13.5 percent year-on-year thanks to shipments of more powerful motor vehicles such as hybrid cars to the country.
