|
. | . |
|
by Staff Writers Tokyo (AFP) July 08, 2014 Japan recorded a current account surplus for the fourth straight month in May, government data showed Tuesday, as the country's trade shortfall narrowed. The surplus of 522.8 billion yen ($5.1 billion) was down 7.7 percent from the same month a year ago, but the rate of decline was much smaller than a 76.1 percent drop in April. The latest current account figure -- the broadest measure of Japan's trade picture -- was influenced by a drop in the country's trade deficit as imports fell for the first time in 19 months. The current account measures not only trade in goods but also services, tourism and returns on foreign investment. The country's trade deficit has been expanding since 2011 as it is forced to import fossil fuels to plug an energy gap owing to its nuclear plants being closed in response to the Fukushima atomic crisis. The trade gap has been exacerbated by a sharp depreciation in the yen since late 2012. A run of monthly deficits in late 2013 and earlier this year raised concerns about the possibility of the balance falling into the red for good, which could have ultimately seen bond yields pushed up as overseas investors demanded a premium on Japan's debt. That would have made it tougher to finance the nation's mountain of public debt -- one of the heaviest burdens in the rich world. Japan used to boast large trade surplus on exports of cars and other industrial products. But it has been saddled with the heavy costs of importing fossil fuels to generate electricity, after its nuclear reactors were shuttered following the 2011 tsunami-sparked atomic disaster. The yen's sharp depreciation since late 2012 has also pushed up import costs. -- Dow Jones Newswires contributed to this report --
Related Links Global Trade News
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement All images and articles appearing on Space Media Network have been edited or digitally altered in some way. Any requests to remove copyright material will be acted upon in a timely and appropriate manner. Any attempt to extort money from Space Media Network will be ignored and reported to Australian Law Enforcement Agencies as a potential case of financial fraud involving the use of a telephonic carriage device or postal service. |