nipon

Japan has announced its first annual trade deficit since 30 years. There total import is greater than there export. The growth in export in Japan has declined by 2.7% and the import has increased by 12 % which is greater than the export. There export has declined due to the tsunami and earthquake that happened in Japan, and there import has grew due to the tsunami which damaged their country significantly. Thus, the country had to import a lot of goods and products to rebuild the city. Japan’s last annual deficit was in 1980. As japan is a major exporter to the European and u.s. markets which are in recession right now its very logical to expect that there export will continue recording deficit till 2014. The country’s average household spending dropped more than 3 percent in November from last year, and total retail sales dropped more than 2 percent from last year, showing poorer performance than previously predicted.  Keeping that in mind, the lower retail performance reflects a weaker growth and suggests that people are poorer and they do not have enough money to buy goods.