Shaky Japanese economy hit by growing trade deficit

FE Team | Published: October 23, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

TOKYO: Cranes unload containers from a freighter at a container wharf in Tokyo port on Wednesday. — AFP Photo

TOKYO, Oct 22 (AFP): Japan's shaky economy was dealt another blow Wednesday, as official data showed a widening September trade deficit that puts the world's number-three economy on track to log a record annual shortfall.
The worse-than-expected deficit of 958.3 billion yen ($8.96 billion) adds to a string of weak figures and follows a sharp economic contraction in the second quarter after an April sales tax rise slammed the brakes on growth-fuelling fears of a recession.
The latest numbers translated into a trade deficit of 10.47 trillion yen for the first nine months of the year, a 35 percent leap from a year ago.
Earlier this month, the International Monetary Fund nearly halved its 2014 growth projections for Japan-to 0.9 percent from 1.6 percent-underscoring the damage that the tax increase inflicted on the economy.
And on Tuesday the Japanese government downgraded its outlook for the economy for the second month in a row, raising more questions about whether Tokyo will raise the levy again next year to 10 percent from 8 percent.