Japan trade affects deficit in economy

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Japan economy experienced a widening gap in its trade balance, according to a Reuters report. The country's Ministry of Finance announced figures on Monday indicate a weakening yen as other foreign countries' economy slowly grows stronger.

The increase in Japan's imports of 19.6% in July last year compared with the estimated 15.4% increase tipped the trade balance unexpectedly, according to Reuters' economists poll. The statistics released by the Ministry of Finance indicates a rising deficit rate of JPY 1.02 trillion yen compared to the forecasted JPY 786.5 billion deficit.

The country's 0.1% fall in capital expenditure caused the Japanese economy only a 0.6% growth compared to the anticipated rate of 0.9% from April to June.

However, according to earlier reports, economists are still positive that Japan's growth remains promising due to a jump in consumer spending in the country that is seen to persist until April 2014.

Currently, businesses in Japan are reducing inventories to adjust to the low demands for production.

Tags
Japan economy, GDP

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