Japan’s trade deficits widens to $6.7bn

Published Nov 21, 2012

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Japan's October trade deficit nearly doubled to $6.7 billion, official data showed Wednesday, as shipments to Europe sank during the global slowdown while a territorial spat with China also weighed.

The trade shortfall came to 549 billion yen, expanding from a year-earlier deficit of 283 billion yen as exports fell 6.5 percent - marking Japan's worst October trade figures in more than three decades.

Shipments to China were off 11.6 percent, with exports of cars plunging 82 percent as demand was hit by a consumer boycott after Tokyo in September nationalised a chain of East China Sea islands claimed by Japan and China.

Imports during the period were down 1.6 percent from a year ago.

The monthly trade figures are the latest worrying sign for the world's third-largest economy, which in September also posted its worst trade figures since 1979, when comparable data became available.

Factory output has also weakened while Japan's economy contracted in the July-September quarter, nudging it towards recession.

Japan's economy has been hit by a litany of problems, including an export-denting strong yen and a fall-off in demand in debt-riddled Europe, with shipments to the European Union falling 20.1 percent in October. - Sapa-AFP

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