Japan fell into a trade deficit in April as exports tumbled at the fastest pace in 18 months on supply chain disruptions after the March 11 earthquake and tsunami.
It is the first time in 31 years that the world's third largest economy has suffered a trade deficit for the month of April, according to the finance ministry. Japan logged a deficit of 463.7 billion yen ($5.6 billion) last month, reversing a year-before surplus of 729.2 billion yen.
Exports fell 12.5%, the fastest pace of decline since October 2009, with shipments of cars diving 67% and electronics parts such as microchips dropping 19%.
Japanese factory production plunged by a record 15.3% in March from February due to the impact of the earthquake, tsunami and a subsequent nuclear crisis, considered the worst since Chernobyl in 1986.
The tsunami halted many nuclear reactors and crippled an atomic power plant on the northeast coast, causing electricity shortages.
Exports to China, the biggest market for Japanese products, decreased 6.8% to log the first year-on-year fall in 18 months as shipments of cars and car parts plunged. The overall deficit, however, was smaller than the market average forecast of 700 billion yen as imports marked a slower-than-expected rise.
Japan last ran a trade deficit in January when the sum reached 479.4 billion yen due to rising commodity prices and weak demand from China ahead of China's Lunar New Year holiday.
Overall imports in April rose 8.9% to post growth for the 16th consecutive month as purchases of petroleum products shot up 62.2% on higher prices and demand.
Economists agreed Japan would return to trade surplus later this year but were divided on whether the deficit would expand in the coming months.
Japan's government maintained its downbeat assessment of the economy as it released a monthly report yesterday. The Japanese economy 'has shown weakness recently' due to the disaster, the Cabinet Office said, forecasting the weakness would continue for some time.
