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Japan posts 1st trade deficit in 26 years

(Xinhua)
Updated: 2008-09-25 15:59

TOKYO -- Japan posted a 324.0 billion-yen trade deficit in August due to surging imports, the Finance Ministry said Thursday.

It is the first time in almost 26 years that Japan has reported a trade deficit, excluding January when exports are generally slow due to the halt in business during the New Year holidays, the ministry said.

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The deficit is mainly due to a lackluster global economic performance and soaring prices of crude oil and other fuels.

Exports increased 0.3 percent to 7,055.9 billion yen for the second consecutive month of rise, while imports grew 17.3 percent to 7,379.9 billion yen, up for the 11th straight month, according to the ministry.

Crude oil imports increased 64.3 percent and those of coal surged 121.2 percent.

The trade surplus with Japan's largest trading partner, the United States, fell 48.2 percent to 371.1 billion yen.

The trade surplus with the European Union went up 6.2 percent to 332.7 billion yen for the second straight month of increase.

Japan posted a trade surplus of 10.8 billion yen with the Chinese mainland. Exports to China, excluding Hong Kong, Macao and Taiwan, rose 8.8 percent to 1,223.4 billion yen for the 39th straight month of increase, while imports fell 4.8 percent to 1,212.7 billion yen.