Japan Trade Surplus Dips for the 1st Time in 7 Months

Japan’s trade surplus fell in March to $6.74 billion, its first decline in seven months from year-earlier levels, the Finance Ministry announced today.

Japanese exports had exceeded imports by $7.46 billion in March, 1988, and by $7.24 billion in the preceding month.

The March figure brought Japan’s trade surplus for fiscal 1988, which ended March 31, to $79.01 billion, up from $75.99 billion the previous year and the first increase in two years.

Exports in fiscal 1988 increased 14.7% while imports rose 19.7%, the ministry said.

Ministry officials said strong overseas demand for Japanese products throughout the fiscal year had boosted exports, especially of semiconductors, computers, cars and business machines.

They said imports remained brisk because of strong Japanese domestic demand and included increased flows of foreign manufactured goods.

The ministry officials said the fiscal 1988 surplus rose mainly because of lower prices for oil, Japan’s largest import commodity.

The officials said imports surged in March as companies began importing in earnest after several months of restrained consumption after Emperor Hirohito’s death on Jan. 7 and funeral on Feb. 24. Importers also stepped up transactions before the end of the Japanese fiscal year, they said.

The trade surplus with the United States in March ballooned to $4.13 billion from $3.40 billion a year earlier, the ministry said. Exports grew 21.6% while imports rose 22%.

For the fiscal year, the trade surplus with the United States declined slightly to $49.10 billion from $50.84 billion in fiscal 1987. Exports to the United States rose 8.4% while imports grew 25.7%.

Japan’s trade surplus with the European Economic Community in March fell to $1.67 billion from $1.93 billion a year earlier, it said.

For the fiscal year, Japanese exports to the EEC exceeded imports by $22.32 billion, up from $20.11 billion the previous year. Exports rose 20.3% while imports expanded by 29.9%.

Japan’s trade surplus with Southeast Asia for the fiscal year rose to $20.37 billion from $14.82 billion the previous year. Exports rose 23.9% while imports grew 19.1%.