Japan Account Deficit Hits Record On Higher Import Costs

Japan’s current-account deficit widened to a record in November as imports climbed, underscoring challenges for Prime MinisterShinzo Abe as he tries to drive a sustained economic rebound.

The 592.8 billion yen ($5.7 billion) shortfall in the widest measure of trade, reported today by the Ministry of Finance in Tokyo, was wider than a median forecast of a 368.9 billion yen deficit in a Bloomberg News survey of 24 economists. Ahead of the data, Goldman Sachs Group Inc. said a smaller income surplus for November probably played a role.

Weakness in the yen and extra demand for energy because of nuclear-plant shutdowns are driving up Japan’s import bill, highlighting drags on the recovery that will also include a sales-tax increase in April. A longer-term risk for the nation is any shift to a sustained deficit that would undermine investor confidence in Japanese government debt.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu