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Japan trade deficit quadruples on-year in March to $14 bn

A weak yen pushed up post-Fukushima energy bills and other import costs

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AFPPTI Tokyo
Last Updated : Apr 21 2014 | 8:45 AM IST
Japan's trade deficit quadrupled on-year in March to $14 billion as a weak yen pushed up post-Fukushima energy bills and other import costs, government data showed today.

Japan logged a deficit of 1.45 trillion yen ($14 billion) against the year-before shortfall of 356.9 billion yen, the finance ministry said.

Exports rose 1.8% to 6.38 trillion yen, thanks to higher shipments of cars and processed fuel products.

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But imports grew a much faster 18.1% to 7.83 trillion yen due to higher imports of crude oil and liquefied natural gas.

Energy imports surged after the 2011 Fukushima crisis forced the shutdown of Japan's nuclear reactors, which once supplied a third of the nation's power.

A sharp decline in the yen, which is good for exporters' profitability, has also forced up the cost of importing.

The yen was an average 8.7% cheaper against the dollar in March compared with the year-before level, according to customs data.

Japanese domestic demand for gasoline and other products also picked up in March ahead of the April 1 sales tax hike from 5.0% to 8.0%.

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First Published: Apr 21 2014 | 6:45 AM IST

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