Japan posts first trade deficit in five years

Japan saw a monthly trade deficit for the first time in the past five years in January as high oil prices boosted imports and Lunar New Year reduced shipments to Asia, now Japan's largest export market. 

Data released by the Japan's Ministry of Finance show that country's trade balance fell to a deficit of Yen 348.9 billion ($2.95 billion) in January from a surplus of Yen 914 billion in December and Yen 193.9 billion a year earlier.

Exports in January rose 13.5 percent to Yen 5.01 trillion while imports expanded 27 percent to Yen 5.36 trillion.

Analysts indicated that aside from the effects high oil prices, growth in imports can be interpreted as a sign that domestic demand is robust. They also added that January is usually the month when the value of exports decline due to New Year holidays in Japan.

Exports are expected to be on a recovery trend as the world economy will be on an uptrend in the first half of this year.

Japan's exports to the US rose 21.7 percent while shipments to the European Union increased 14.8 percent.

However, Japan's exports to Asia managed only a modest increase of 5.1 percent.