The sharp deterioration in Japan's current account in January reflected the dire impact of plunging global demand and a stronger yen on its export-dependent economy. Lower interest payments hit the country's overseas income too.
The country's first deficit since 1996, at Y172.8bn ($1.75bn), was much larger than the Y15.3bn forecast by economists and the biggest since the government started compiling comparable data in 1985.
Shrinking demand in all of Japan's leading export markets pushed its trade deficit to a record Y952.6bn in January. As recently as 2007, Japan posted a record annual current account surplus of Y24,800bn.
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