May 25, 2011 3:00 PM

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Japan faces trade deficit in April

Japan has reported its first trade deficit during April in 31 years after exports of automobiles and other goods plummeted in the wake of the March 11 earthquake and tsunami. The Japanese Finance Ministry said the country posted a 5.6 billion dollar trade deficit last month, with exports falling 12.5 per cent, the biggest decline since October 2009, while imports rose 8.9 per cent. Exports to China, Japan's biggest market, fell 6.8 percent last month, the first decline in 18 months, while shipments to the United States plunged 23.3 per cent. Exports of Japanese-made automobiles dived 67 per cent, while electronic products dropped 19 per cent in April. Japan's manufacturing sector ground to halt in the aftermath of the twin disasters, which damaged and destroyed scores of factories and led to massive production delays. The disasters caused the country's economy to shrink in the three months through March 31, pushing the world's third-largest economy back into recession.

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