Japan Seems to Suffer Trade Deficit First Time in 16 Years

The Japanese administration announced yesterday `it will probably suffer trade deficit for the first time in 16 years` by the drastic alleviation of the export.

According to the report of the Japanese administration, `a report on the decrease of the trade surplus in trade and service areas` the balance of the quarter might be recording deficit in this year if the slowdown of the world economy is aggravated by the impact of terror in the U.S.

The Japanese balance of trade and service areas has enjoyed surplus since 1985 and recorded the greatest surplus of 3 trillion 600 billion yen during the 4th quarter of 1986. However, the surplus has been decreasing this year from 470 billion yen during 2nd quarter to 82.7 billion yen in July. Particularly, Japan had suffered drastic decrease of export, 1 trillion and 533.7 billion yen, during the 2nd quarter of this year.

The report analyzed that the surplus slowdown was caused by the increased import due to the expansion of domestic economy but the characteristics of recent decrease of the surplus is originated in the reduction of the export by the slowdown of the world economy.

Lee Young-Ee yes202@donga.com