Japan Posts 1st Monthly Trade Deficit in 4 Years

Japan reported its first monthly trade deficit in four years as slowing growth in the United States and Asia took its toll on exports. With imports of oil, textiles and information technology goods remaining strong, Japan plunged into a deficit of $824.1 million in January, the Ministry of Finance said. It was the first deficit since January 1997. The value of exports rose just 3.1% from a year earlier, while imports surged by 24.3%. Figures for January are notoriously volatile because of holidays early in the month, but officials and economists said the deficit underlined the steady shrinkage in Japan’s traditional trade surplus. “January’s deficit was probably affected by seasonal factors, but an impact might have come from a slowdown in the U.S. economy,” a MOF official said. He said the trend of rising imports and declining exports would probably continue, with the result that Japan’s surplus was unlikely to resume climbing in the near term. Japan’s surplus with the United States, its largest trading partner, fell 3.9% from January 2000.