Japan’s exports drop in April after disasters

Japan fell into a trade deficit in April as exports tumbled at the fastest pace in 18 months on supply chain disruptions after the March 11 earthquake and tsunami, according to statistics from the Finance Ministry on May 25.
Japan fell into a trade deficit in April as exports tumbled at thefastest pace in 18 months on supply chain disruptions after the March 11earthquake and tsunami, according to statistics from the FinanceMinistry on May 25.

It is the first time in 31 years that the world's third-largest economyhas suffered a trade deficit for the month of April, said the ministry.

Statistics showed that Japan logged a deficit of 463.7 billion yen (5.6billion USD) last month, reversing a year-prior surplus of 729.2billion yen.

Exports fell 12.5 percent, the fastest pace of declinesince October 2009, with shipments of cars diving 67 percent andelectronics parts such as microchips dropping 19 percent.

Accordingto the Japan Cabinet Office’s monthly economic report released onMay 24, enterprises’ investment profits decreased due to the naturaldisasters. The economy’s weakness would continue for a period of time,however, with the hope that production would soon recover and Japan’seconomy would rebound thanks to effective policies, as well as recoveryof external economies, the report said./.

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