Japan: The Trade Surplus and the Coming Recession

Japan's Finance Ministry has released statistics showing that the country's trade surplus for the first half of the fiscal year (April-September) has plummeted 85.6 percent from the previous year. While the Japanese trade balance remains in surplus, it was weakening fast even before global recession loomed. If Japan's trade slips into the red, it will not be able to add to its currency reserves — ultimately the country's only means of staving off serious economic dislocation.