Japan Merchandise Trade Surplus Up
TOKYO (AP) _ Buoyed by a weaker yen and declining imports, Japan’s merchandise trade surplus jumped nearly 50 percent in 1997 _ the first increase in five years.
The surplus climbed to 10.008 trillion yen ($787 billion), the Japanese Finance Ministry said Thursday.
Japan’s politically sensitive trade surplus with the United States also surged, rising 41.7 percent to 5.025 trillion yen ($39.5 billion) in 1997, marking the first rise in three years.
Analysts have blamed a weak Japanese economy and lower demand for imports for the increase in the surplus. A national sales tax hike that went into effect April 1 has curtailed consumer spending in Japan.
At the same time, automakers and other manufacturers have been boosting exports to offset weak sales at home.
In addition, a weaker yen has made the price of Japanese goods more attractive overseas, while also making foreign products more expensive in Japan.
The surging surplus could spark a resumption of trade friction with the United States, where officials have repeatedly warned Japan not to export its way out of an economic slump.
Also Wednesday, the ministry announced that the trade surplus for the month of December advanced, rising 40.9 percent compared to the previous year. It marked the ninth straight monthly year-on-year increase in the surplus.
Japan’s trade surplus with the United States climbed 25 percent to 487.25 billion yen ($3.83 billion) in December, the ministry said.