Japan logs goods trade deficit for 2nd straight year in 2019

Thursday, 2020-01-23 16:25:23
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Japan booked a goods trade deficit in 2019, marking the second consecutive year a shortfall has been logged, the government said in report on January 23.

According to the Finance Ministry, the nation's trade deficit in the recording period stood at JPY1.64 trillion (US$14.96 billion), with exports down 5.6 percent to JPY76.93 trillion (US$702.06 billion) compared to a 5 percent drop in imports to JPY78.57 trillion (US$717.10 billion).

On a regional basis, Japan booked a deficit with China, its largest trading partner, of JPY3.76 trillion (US$34.31 billion) in the recording period, with the amount growing for the first time in four years.

The ministry in Tokyo said that demand for Japanese automobile components and semiconductor-linked equipment from China had declined in the recording period.

In its preliminary report, the ministry also said that with the United States, Japan booked a surplus of JPY6.63 trillion (US$60.50 billion), expanding from a year earlier, owing to solid demand for pharmaceutical products and circuit chip-making equipment.

As for Europe, a decline in demand for pharmaceutical products and vessels led to a deficit of JPY756.37 billion (US$6.90 billion) in the recording period.

For December alone, Japan's goods trade deficit stood at JPY152.52 billion (US$1.39 billion), with exports dropping for the 13th straight month, down 6.3 percent, to stand at JPY6.58 trillion (US$60.04 billion).

Imports in the recording month, meanwhile, stood at JPY6.73 trillion (US$61.41 billion), dropping 4.9 percent and marking the eighth successive month of decline, the data showed.