14 Jan 2014
Japan posts historic current account deficit
FXstreet.com (Bali) - Both Japan’s economy minister Amari and its chief cabinet secretary Suga, crossed the wires today, saying that the government will pay close attention to the current account deficit, which has been deteriorating considerably, with its latest episode today, after a big miss again.
The 592.8 billion yen in deficit for November, which surpassed by far the median forecast of 380.4 billion yen deficit, came as a cheap yen forced higher cost of imports. The trade deficit in November stood at 1.25 trillion yen, as per data collected by the finance ministry this Tuesday.
However, a Reuters articles citing Takeshi Minami, chief economist at Norinchukin Research Institute, suggests the current account may soon return to surplus.
Minami said, cited by Reuters: "On top of the weak yen, we have solid domestic consumption before a sale tax hike in April, which has boosted imports, as such, Japan's current account tends to log deficits for the time being, but it will return to surplus steadily after April as the tax hike curbs domestic demand and the U.S. economy leads the global recovery."
The 592.8 billion yen in deficit for November, which surpassed by far the median forecast of 380.4 billion yen deficit, came as a cheap yen forced higher cost of imports. The trade deficit in November stood at 1.25 trillion yen, as per data collected by the finance ministry this Tuesday.
However, a Reuters articles citing Takeshi Minami, chief economist at Norinchukin Research Institute, suggests the current account may soon return to surplus.
Minami said, cited by Reuters: "On top of the weak yen, we have solid domestic consumption before a sale tax hike in April, which has boosted imports, as such, Japan's current account tends to log deficits for the time being, but it will return to surplus steadily after April as the tax hike curbs domestic demand and the U.S. economy leads the global recovery."