Monday, November 05, 2012

Japan consistently running trade deficits

This chart of Japan's trade balance shows consistent deficits roughly since the Fukushima catastrophe. 

Since practically all of the country's nuclear power generating capacity has been shut down, the country has been reliant on oil and natural gas imports, which contribute to the negative trade balance.

Given this situation, Japan is likely no longer a net purchaser of US Treasury debt.


Fred said...

Japan can still print, LOL shows their UST is up ~20% -- $200B -- since Aug 2011.

Scott said...

Excellent point, Fred.

Robert Cameron said...

Given Japan's long-term demographic decline, they will increasingly become a net importer.
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