Japan trade affects deficit in economy
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.