Japan's trade surplus goes above dollars 100bn
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JAPAN's trade surplus soared to dollars 107bn ( pounds 71bn) last year, a 37.6 per cent increase on the 1991 figure and the first time in history the surplus exceeded dollars 100bn, according to figures released yesterday by the Ministry of Finance.
With imports continuing to shrink in the domestic recession, economists say the surplus is likely to increase even more in 1993. 'If Japan doesn't do anything, the surplus will continue to balloon this year,' said Masaru Takagi, chief economist of Fuji Research Institute. 'The government must seriously work on stimulating domestic demand.'
The size of the surplus is becoming a serious embarrassment to Japan, particularly as the new US administration has pledged to push for fairer trade and more open markets with Japan.
The ministry said the main reasons for the rise are the strengthening of the yen and shrinking demand for imports. But it is clear many companies are trying to export their way out of trouble.
The Ministry of Finance is sticking to its conservative line. Yoshiro Hayashi, the Finance Minister, yesterday expressed his opposition to the issuance of bonds to provide a quick stimulus.
'It is clear that once debt-financing bonds are issued, it will become extremely difficult to stop relying on them and fiscal policy will become chronically subject to red ink,' Mr Hayashi said.
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