Japan Trade Deficit Expected To Continue Despite Weakening of Yen

Japan is on course for its longest run of trade deficits, effectively marking the end of the nation’s decades-long reliance on exports from the likes of electronics giant Sony and automaker Toyota as a driver of growth and income.

Trade figures due on Thursday are likely to show that Japan produced its 14th consecutive deficit in August, matching a 1979-1980 record run during the global oil shock. Economists say the deficits will continue.

When Prime Minister Shinzo Abe’s reflationary policies weakened the yen after he took power last December, many economists had anticipated a so-called J-curve effect, where a spike in import costs would over time be more than offset by gains in exports.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.