Japanese Trade Surplus Cut By 80%
Japan's trade surplus narrowed in August as surging crude oil prices helped push imports up 21 percent to a record high, the government said Thursday.
The trade surplus shrank to ¥116.3 billion, or $1.04 billion, from ¥572.9 billion a year earlier, the Ministry of Finance said. Imports rose to ¥5.1 trillion, with energy costs accounting for more than half the gain. Exports rose 9.1 percent, their strongest gain since November.
Rising oil prices have swelled Japan's import bill and may erode corporate profit and may hurt sales by curbing U.S. consumer demand. The biggest concern is that rising oil prices could derail growth in the U.S. and other countries, which would be a blow to Japanese exports. Higher prices for crude and other raw materials are also raising manufacturers' costs.
Still, the direct effect on Japanese companies and consumers is likely to be less than for the nation's main trading partners. Japan uses half as much energy as the United States to produce one unit of gross domestic product, and a quarter the amount used by China, according to a report released by the Asian Development Bank on Sept. 8.
Lets see, the Japanese trade surplus shrank 80% in one year with energy costs accounting for over 50% of the increase in import costs. And Japan's consumption is very efficient compared to the US (100% more) and China (400% more).
Makes one wonder how much our trade deficit has been increased at 100% additional consumption, and how much China's trade surplus has been reduced at 400% additional consumption per unit of GDP???
Something tells me that a big chunk of China's supposed surplus reserves are going to pay for their energy inefficency.
International Herald Tribune
The trade surplus shrank to ¥116.3 billion, or $1.04 billion, from ¥572.9 billion a year earlier, the Ministry of Finance said. Imports rose to ¥5.1 trillion, with energy costs accounting for more than half the gain. Exports rose 9.1 percent, their strongest gain since November.
Rising oil prices have swelled Japan's import bill and may erode corporate profit and may hurt sales by curbing U.S. consumer demand. The biggest concern is that rising oil prices could derail growth in the U.S. and other countries, which would be a blow to Japanese exports. Higher prices for crude and other raw materials are also raising manufacturers' costs.
Still, the direct effect on Japanese companies and consumers is likely to be less than for the nation's main trading partners. Japan uses half as much energy as the United States to produce one unit of gross domestic product, and a quarter the amount used by China, according to a report released by the Asian Development Bank on Sept. 8.
Lets see, the Japanese trade surplus shrank 80% in one year with energy costs accounting for over 50% of the increase in import costs. And Japan's consumption is very efficient compared to the US (100% more) and China (400% more).
Makes one wonder how much our trade deficit has been increased at 100% additional consumption, and how much China's trade surplus has been reduced at 400% additional consumption per unit of GDP???
Something tells me that a big chunk of China's supposed surplus reserves are going to pay for their energy inefficency.
International Herald Tribune
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