Japan’s trade deficit surged to a record in January, as one-off factors including the Lunar New Year holidays dragged on exports amid a backdrop of a slowing global economy.
The trade gap jumped to ¥3.5 trillion ($26.1 billion) from ¥1.45 trillion in December, topping ¥3 trillion for the first time in comparable data going back the late 1970s, the Finance Ministry reported Thursday. The deficit far exceeded the previous record, although it was smaller than analysts’ estimates.
Export growth slowed sharply to 3.5%, with chip-making equipment among the largest drags, in a sign of weakening global tech-sector demand. The value of shipments to China sank 17.1%, dragged down by cars, auto parts and chip machinery. Exports to the U.S. and Europe also grew at a weaker pace of 10.2% and 9.5% respectively.