Japan Hits Record Trade Deficit

Japan has reported a record annual trade deficit after the weak yen pushed up the cost of energy imports.

Its deficit rose to 11.5 trillion yen ($112bn; £68bn) in 2013 – a 65% jump from a year ago.

Japan has seen its energy imports rise in recent years after it shut all of its nuclear reactors in the aftermath of the tsunami and earthquake in 2011.

But it is having to pay more for those imports after a series of aggressive policy moves weakened the yen sharply.

The Japanese currency fell more than 20% against the US dollar between January and December last year.

The latest trade data showed that while Japan’s imports of Liquefied Natural Gas (LNG) rose 0.2% by volume in 2013 from the previous year – the value of those imports surged nearly 18%.

This is the third year in a row that Japan – traditionally known for the strength of its exports – has reported an annual trade deficit.

via BBC

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