Japan's trade gap shrinks
Japan's trade deficit narrowed in February to 800 billion yen ($7.9
billion) - the lowest level in nine months. Exports increased by 9.8%
and imports showed a sharp slowdown, with a 9% increase in February.
In January the trade gap surged to a record high after imports
increased 25%.
Imports had been increasing ahead of a planned tax increase planned
for April, as Japanese stocked up on foreign goods.
The Chinese Lunar New Year, which had led to a temporary slowdown in
foreign buying, also contributed to the large January figure.
Many analysts believe the imports surge will slow as the planned tax
increase goes into effect. Japan has a run a trade deficit for the past
20 months - a record stretch.
That has been partially due to increasing imports of fossil fuels,
after the Fukushima nuclear disaster left the country bereft of its
nuclear power base.
- BBC
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