Japan's trade balance went into the red in 2011 - the first since 1980 when soaring oil prices caused a trade deficit. But the current account balance is still in the black thanks to income generated by Japan's overseas net assets amounting to some ¥250 trillion. This money is reinvested overseas to generate further income. Still, utmost care must be taken to prevent trade deficits from becoming a regular feature of the Japanese economy.
In 2011, Japan's exports decreased 2.7 percent from 2010 to ¥65.554 trillion - the first dip in two years. Behind the fall were such factors as the serious damage inflicted on supply chains by the March 11 disasters and a slowdown of the world economy caused by the sovereign debt crises in Europe. Japan's car exports declined 10.6 percent and exports of electronic parts by 14.2 percent. (Japan Times)
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