Japan posts record trade deficit

According to the latest data released by the Japanese Finance Ministry, the September deficit rose to 932.1 billion yen ($9.5 billion), up 64 percent from a year ago, which shows an unprecedented fifteenth straight month of shortfall in data back to 1979.

Japan’s imports rose 16.5 percent in September from a year ago, while exports climbed 11.5 percent.

Meanwhile, the yen has weakened by almost 25 percent against the US dollar since November 2012.

Although yen’s fall against the US dollar helped Tokyo’s exports by making them cheaper, it made imports more expensive.

Japan’s trade shortfall last year totaled 6.92 trillion yen (about $78 billion), with the deficit in December alone standing at a higher-than-expected 641.5 billion yen.

Analysts say imports have been increasing over these months due to higher demand for fuel, which has been triggered by the shutdown of all of Japan’s nuclear reactors in Fukushima.

On March 11, 2011, a nine-magnitude earthquake triggered a tsunami that inflicted heavy damage on the six-reactor plant.

Japan’s 50 nuclear reactors were shut down after the disaster. Before the tsunami, the nuclear reactors provided 30 percent of the country’s electricity and the government had planned to increase the share to more than 50 percent by 2030.

Having been badly hit by soaring gas and oil costs, Japanese utility companies are eager to get their reactors back online.