Japan announced Thursday its politically sensitive trade surplus jumped 88.9 percent in May from the same month last year, increasing prospects of acrimonious trade disputes with trading partners.
Private-sector economists predicted the imbalance will spurt to new heights in the next year because the sluggish economy cannot absorb more imports and demand abroad for Japan's exports continues to be robust.The surpluses with the United States, the European Community and Asia all grew at a double-digit pace.
The unadjusted customs-cleared surplus rose to $7.87 billion for the month, up from a revised $4.16 billion the same month the previous year, the Finance Ministry said.
Exports rose 4.1 percent to $25.46 billion from $24.46 billion in May 1991, marking the 24th consecutive year-on-year increase. But imports shrank a hefty 13.3 percent to $17.60 billion from $20.30 billion.
"(The increase in the surplus) reflects weak growth in domestic demand," said Chiharu Shima, economist at UBS Phillips and Drew. "There has also been a strong recovery of world economic growth, but no spectacular recovery here in Japan."
She noted the surplus is bound to increase frictions with Japan's major trading partners.