Japanese deficit is the first for 13 years

Japan today posted a current account deficit for the first time in 13 years after exports plunged.

The finance ministry said the shortfall - the difference between imports and exports - stood at a record 172.8 billion yen in January.

Exports crashed 46.3% to 3.28 trillion yen because of tumbling overseas demand for Japanese goods such as cars. Imports declined 31.7% to 4.13 trillion yen. The shortfall was far bigger than the previous record of 25.6 billion yen in January 1996.

"We incurred the current account deficit due to a plunge in exports," said ministry official Michito Yamagami. "Our exports to key regions were all down sharply due to the deteriorating global economy."

Exports to the US fell 52.9% from a year earlier, Asia-bound shipments shrank 46.7% and trade with the EU slid 47.4%.