Japan's July trade surplus drops 86.6 percent
August 21, 2008
Japan's trade surplus in July fell 86.6 percent to 91.1 billion yen (830 million dollars) from a year ago, the finance ministry said Thursday, as high oil prices drove up the cost of energy imports.
It marked the fifth straight month of decline for the trade surplus, as the value of imports rose 18.2 percent to 7.54 trillion yen, outpacing exports which rose 8.1 percent to 7.63 trillion yen.
The data came after the ministry reported a month ago that exports in June dropped for the first time in more than four years, as the world's second largest economy was hit by the global financial crisis and high energy costs.
By regions, July exports to the rest of Asia gained 12.7 percent to a new record high of 3.86 trillion yen.
Asia-bound imports also marked a new record high by gaining 5.7 percent to 2.93 trillion yen, leaving the surplus of 928.5 billion yen, up 42.3 percent from a year ago.
The figures included China-bound exports, which rose 16.8 percent to a record high 1.29 trillion yen, while Chinese imports also marked a new record high of 1.36 trillion yen, up 5.1 percent year on year.
But exports to the United States continued to fall, shrinking 11.5 percent in July to 1.28 trillion yen, while US imports also fell 3.5 percent to 676.0 billion yen.
Japanese auto exports to the US market, one of the key drivers of the Japanese economy, dropped 11.7 percent while US-bound auto parts exports also fell 12.3 percent.
Exports to the European Union rose 4.1 percent to 1.03 trillion yen, but European imports fell 6.3 percent to 658.4 billion yen, the ministry said.