Kuwait's trade surplus with Japan narrows 28.2%

26/07/2012 10:46 AST

Kuwait's trade surplus with Japan narrowed 28.2 percent in June to 49.4 billion Japanese yen (632 million US dollars) from a year earlier, shrinking for the second straight month. Kuwait registered black ink with Japan for the 53th consecutive month, the Finance Ministry said Wednesday.

Kuwait's overall exports to Japan plunged 20.8 percent to 60.5 billion yen ($774 million) for the second straight monthly decline, while imports from Japan surged 45.0 percent year-on-year to 11.1 billion yen ($142 million), up for the ninth month, the ministry said in a preliminary report.

The Middle East's trade surplus with Japan narrowed 2.3 percent to 845.8 billion yen ($10.8 billion) last month, with Japan-bound exports from the region falling 1.3 percent from a year earlier to 1.032 trillion yen ($13.2 billion).

Energy exports, which accounted for 98.4 percent of the region's total shipments to Japan, edged down 0.8 percent on the year.

Among resources, crude oil shipments from the Middle East declined 4.6 percent, while liquefied natural gas (LNG) posted a 46.5 percent rise. Imports from Japan rose 3.2 percent to 186.5 billion yen ($2.4 billion) on the back of solid shipments of automobiles and steel.

The world's third-biggest economy posted a global trade surplus of 61.7 billion yen ($790 million) in June, the first black ink in four months, due to a decline in oil prices, the ministry said.

The value of exports fell 2.3 percent to 5.644 trillion yen ($72.2 billion) for the first decline in four months, and imports also declined 2.2 percent to 5.582 trillion yen ($71.4 billion) for the first fall in 30 months.

Meanwhile, Japan posted its biggest half-year trade deficit of 2.916 trillion yen ($37.3 billion) as rising fuel imports offset shipments of cars and auto parts to the US and China, the ministry said. In the January-June period, exports grew 1.5 percent from the same period of last year, while imports rose 7.4 percent. Japan is buying more fossil fuels for thermal power generation as most of the nation's 50 workable nuclear reactors are currently idled in the aftermath of the radiation accident in March 2011 at the Fukushima Daiichi nuclear power plant, which was triggered by the massive earthquake and tsunami. Two reactors were reactivated this month.

The trade deficit was the largest since the government began records in 1979. Japan's export-oriented economy has been affected by a stronger yen and weaker demand stemming from Europe's debt crisis. The trade data are measured on a customs-cleared basis before adjustment for seasonal factors.

The exchange rate of the US dollar against the Kuwaiti dinar stood at KD 0.281, whereas the euro dropped to KD 0.340 compared to Tuesday's figures, said the Central Bank of Kuwait (CBK) on Wednesday.

Meanwhile, the exchange rate of the Sterling pound stable at KD 0.437. The Japanese yen remained unchanged at KD 0.003 and the Swiss franc dropped to KD 0.283.

KUNA