Japan's trade deficit swells 25% in August

Hard to believe importing oil to offset the nuclear plants has that much of an effect.

Ultra-easy monetary policy has weakened the yen, boosting exports, but the increase has not been enough to offset surging import costs

Those who wants cheaper products are already getting from China and elsewhere. Weakening of yen will hardly improve export. People are still buying "Made in Japan" only because those items has reputation (eg Canon/Nikon lens) and they will buy it no matter yen is weak or strong. However, the import figure in yen wouldn't have climbed so much if yen is stronger.

Even without the shutting off of the nukes, this was expected. Sure, you'll get more sales from cheaper Yen, but you'll increase the cost of raw materials, oil or not.

But seeing as how Abenomics started this AFTER the nuke problem, I can't believe they didn't see this coming. Anything that can be easily explained in a short, four paragraph news story CAN'T have been overlooked by central bankers that set monetary policy.

I think Abenomics is merely a ruse, to benefit the "connected" elitists at the expense of everybody else.

How come there wasnt a problem reported when the $ yen was at 110 - 120 prior to 2008 ? Seems to be some sort of B.S. or some one is not telling the truth but simply using selective reporting.

Politicians of every creeds are deceitful and corrupted.

Switch on the nukes.

Like they said in the other article of the same nature the other day, export is not going to get better since many companies in Japan has been trying for the last decade to move production elsewhere with either cheap(er) labor or incentives on building factories. I guess "Kuudouka" is the key word.

If you understand a basic economics how it works and the price of crude oil is a dollar based, the failure was easily predicted from the beginning. Abnomics is a deceitful economic package sold to naïve Japanese middle class peasants.

Guess it takes more than money printing to build a thriving economy. Who'd a thunk it?

Great!

Looks like Abenomics is working!

Drowning causes panic, Japan is drowning, shrinking tax base, compounded by a N-disaster that the government is in total denial about. A disaffected population who just want to keep what they have. A lack of leadership at every level....this will not end well.

Trade with America is beneficial. Trade with China isn't, but they have to do it.

And the Japanese manufacturers are revving up to produce in Japan?

No they aren't!!!

Today' news out of a well known network quotes the Prez of Nissan...

"[The] strategy that we have maintained for the past years, which consists of localizing production as much as possible, will continue," Ghosn told ------- adding Nissan plans more investments in North America, China and Southeast Asia.

Abe doesn't know what he is doing.......

lostrune2,

Trade with America is beneficial to America. The TPP plan is shrouded in secrecy and benefits ONLY the large companies like Monsanto and destroys the small farmer. It's Oklahoma all over again.

Trade with China is already happening. They do not flood the market with Genetically Modified vegetables and allow Japan to test for BSE in the beef. America wants to stop the labelling of GM items and to stop BSE testing.

The Chinese plan is honest. The American plan is secretive and dishonest.

Japan's trade deficit with China is currently in China's favour. All Japan has to do is to produce some products that Chinese people want to buy. Apple and Samsung don't have a problem with that. Why can't Japan produce products the Chinese want?

Tokyo stocks are up and the trade deficit widens?

Japanese manufacturing will never return here until Abe makes sure that the Japanese are on 3rd world level wages!!!!

Abe wants to keep his blue blood foot on the workers-that much is obvious....

Bertie,

Trade with America is beneficial to America.

Not as much as it benefits Japan. "Exports to the U.S. jumped nearly 21% in August from a year earlier, while imports rose 14%, leaving a surplus of 495.3 billion yen ($5 billion)." I'd say positive $5 billion is much better than negative $5 billion. And this is not about just select large companies but overall.

Meanwhile, China has a history of exporting tainted products, but they won't care since in the end they know their cheap stuff will still outsell the other country - they know in the end they'll be the winner over the other country and still get a trade surplus, despite controversies.

Japan's trade deficit with China is currently in China's favour. All Japan has to do is to produce some products that Chinese people want to buy.

The prospects don't look good:

http://www.japantoday.com/category/politics/view/japan-faces-record-long-trade-deficit-with-few-signs-it-can-reverse-trend

Bertie. Well said

lostrune2, Generic and financial sectors are the one that benefited the US greatly, Bertie is correct.

All Japan has to do is to produce some products that Chinese people want to buy.

Personally I don't think it is this simple, good will has to be restored as well.