Japan reported its first annual trade deficit since 1980 as it imported expensive energy to offset shortfalls caused by the devastating tsunami and manufacturers shifted production overseas to avoid the damage inflicted by the strong yen.
The 2.49 trillion yen ($32 billion) deficit for 2011 reflected a 2.7 percent decline in the value of Japan's exports to 65.55 trillion yen ($843 billion). In December, the trade balance was a deficit of 205.1 billion yen, according to the Ministry of Finance figures released Wednesday.
The yen's surge to record levels against the dollar and euro has made Japanese exports more expensive and also erodes the value of foreign earned income when brought home. Recently, Nissan Motor Co. and Panasonic Corp. have shifted some of their output to factories overseas.
At the same time, Japan is facing intense competition from South Korea, Taiwan and Singapore, where labor and production costs are cheaper. (AP)
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