Japan logged a record trade deficit for all of 2013, the third straight year of red ink, as Prime Minister Shinzo Abe's efforts to lift exports and reverse a long-standing trend toward greater overseas production have so far failed to make much headway.
Some economists say the continuing string of deficits, despite a sharp 18% weakening of the yen, shows that Japan's trading patterns have shifted, with big manufacturers continuing to keep production overseas. While the high value of the yen from 2008 to 2012 has been cited as a factor, companies such as Toyota Motor Co. have said that they want to have production tied as closely as possible to the markets for their goods.
"Contrary to expectations held by many, exports are unlikely to lead the economy higher," said Meiji Yasuda Life Insurance chief economist Yuichi Kodama. "This trade structure will likely remain unchanged for a while," he said.
The government figures released Monday showed that the deficit in December was ¥1.302 trillion ($12.73 billion), double the year-ago figure. That pushed the full-year trade gap to ¥11.475 trillion, the largest ever under the current statistical format dating back to 1979.
The yen's sharp depreciation, as a result of aggressive monetary easing by the Bank of Japan, has increased the value of exports, which jumped 15.3% in December from year-ago levels, but export volumes have been largely static, as companies have opted to keep overseas prices unchanged to increase profits instead of trying to boost their market share.At the same time, imports have surged, rising 24.7% in December from the same 2012 period.
Much of the increase has been attributed to the rise in fossil fuel imports that has occurred since the March 2011 Fukushima Daiichi nuclear accident led to the idling of all of Japan's 50 nuclear power plants.
The latest figures also suggest that buying patterns may be changing. Sales of products, 's Inc.'s iPhone, have been buoyant despite the weaker
