Japan is expected to post its first trade deficit in more than 30 years due largely to the disruption of last year’s earthquake and tsunami. The country’s automotive industry was particularly hard-hit and production lines were forced to shut down and global inventory fell to record lows.
The resulting meltdown at the Fukishima nuclear reactors continues to disrupt power supply in some areas and it is expected that it will be several more years before production levels return to normal. Until then, it is likely that Japan will continue to experience a trade deficit.
Source: Reuters
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