"I thought we would see exports grow a bit more, but the results may indicate that the global economy isn't on a clear recovery path just yet. Our house expects the deficits to turn around sometime later next year"
- Hideki Matsumura, senior economist at the Japan Research Institute
Japan posted another trade deficit in June as imports costs advanced on a weaker Yen, according to the Ministry of Finance. Trade deficit widened to 180.77 billion yen, slipping into the red area for the 11th straight month. The headline figure came in against analysts' forecasts, who had estimated a shortfall of 155.7 billion yen after a downwardly revised 996.4 billion yen deficit in May. Exports rose 7.4% on a yearly basis to 6.061 trillion yen, missing expectations for a 10% gain following the 10.1% annual advance a month earlier. Imports added 11.8% on year to 6.242 trillion yen compared to initial estimates for a jump of 13.8% after the revised 10.1% spike in the previous month.
The figures came against a backdrop of an improvement in the Japanese economy, with overall economic expansion at an annual rate of around 4%, strong for the country compared to levels seen in recent years.
Japan's trade balance substantially deteriorated after 2011 as the nation's currency strengthened, forcing Japanese manufacturers to move operations overseas, while the accident at the Fukushima Daiichi plant caused a near complete shutdown of commercial reactors and spike in imports of expensive fossil fuels.
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