Japan reports $2.4B November trade deficit

TOKYO, Dec. 22 (UPI) -- Japan, hit by slowing overseas demand for its products, had a trade deficit of 223.4 billion yen ($2.48 billion) in November, the government said Monday.

The finance ministry said November exports, hurt also by a rising yen, showed the steepest decline on a year-to-year basis, the fourth month this year when the country posted a deficit, the longest such streak since 1980.

November's global exports totaled 5,326.6 billion yen ($59.3 billion), down 26.7 percent from the same month of last year, Kyodo news service reported. November exports to the United States fell 33.8 percent.

November imports totaled 5,550 billion yen ($61.7 billion), down 14.4 percent from year-ago levels.

Japan, the world's second-largest economy after the United States, is already in recession and the government last week predicted zero GDP growth next fiscal year beginning April.

Nomura Securities economist Takahide Kiuchi told Kyodo the latest numbers showed world trade is shrinking at an accelerated pace in the current global environment.

"It is a panic situation," he said. "Japan's exports were supported by emerging nations, but they have recently been falling globally. Not only vehicles and electric appliances but other items do not sell.''

He said the situation in Japanese exports may continue until next spring.

''We may see a historic worsening of exports,'' Kiuchi said.