Japan's trade balance plunged into a deficit of ¥725.32 billion in the year through March, the first red ink for a fiscal year in 28 years, hurt by earlier rises in commodity prices and slower exports to the United States and other economies, the Finance Ministry said Wednesday.
Exports dropped a record 16.4 percent in fiscal 2008 from the previous year to ¥71.14 trillion, the first decline in seven years, the ministry said in a preliminary report. Imports fell 4.1 percent to ¥71.87 trillion, also the first fall in seven years.
It was the first deficit for a business year since fiscal 1980, when Japan suffered from soaring crude oil prices after the second oil crisis. Analysts point to the difficulty the economy faces in attempting to export its way out of a recession.