Japan trade deficit: The changing focus from exports to investments

Japan recorded its first trade deficit in 30 years (photo:dpa)
Japan recorded its first trade deficit in 30 years (photo:dpa)

Japan’s first trade deficit in 30 years is not just a reflection of the natural shocks its business has suffered in 2011 which increased imports and affected supply chains for industry. It also reveals underlying problems which have weakened its position as a major world exporter.

JAPAN reached a turning point in 2011. It was the year the country’s shift from exporter to importer came to prominence and the first time that Japan’s imports had exceeded exports since 1980.

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Its trade deficit for 2011 was JPY 2.5 trillion (25 billion euros), a shortfall which arose as a result of a 12 per cent rise in imports and a 2.7 per cent decline ...

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