Why
the Japanese economy is in pain??
The economical situation in Japan is worrying. Official
figures show that Japan’s trade deficit for September surged to a new record
high as exports growth in the country slows. According to the latest data released by the Japanese
Finance Ministry, the deficit rose to 932.1 billion yen ($9.5 billion) in
September, up 64 % from a year ago (568.2 billions yen). Also, Japan’s imports
rose 16.5 % in September from a year ago, while exports climbed 11.5 %.
Meanwhile, the yen has weakened by almost 25 % against the US dollar and the Euro since November 2012. Although yen’s fall against the US dollar helped Tokyo’s exports by making them cheaper, it made imports more expensive. Analysts say imports have been increasing over these months due to higher demand for fuel, which has been triggered by the shutdown of all of Japan’s nuclear reactors in Fukushima after a tsunami earthquake left a heavy damage in 2011 and many nuclear reactors were shut down after the disaster.
Because of Japan's dependence on imports and the
dollar's decline as a result of decreasing jobs data and the unstable condition
of USA, Japan is facing a bleak future for its currency and its economy.
