Japan's exports fall 2.2% in March on quake impact

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Japan's exports fell for the first time in 16 months in March, as the hugely negative impact of the March 11 earthquake and tsunami on Japan's key export sector is becoming increasingly quantifiable, the Ministry of Finance said on Wednesday.

According to the government's latest figures, overseas shipments slumped 2.2 percent in March from a year earlier, following a 9.0 percent gain logged in February.

The figure for March was far higher than median economists estimates for a 1.1 percent drop in the recording period.

The total value of exports in March contracted to 5,866.0 billion yen (71 billion U.S. dollars) and the nation's trade balance logged a 195.5 billion yen (2.4 billion U.S. dollars) surplus in the recording period, the government's preliminary report revealed.

The ministry data showed that overseas shipments of electrical machinery like semiconductors, parts of audio and visual apparatus, fell 6.1 percent in the reporting month, and exports of transport equipment including cars, buses, trucks, auto parts and components dropped 19.1 percent in March from a year earlier.

Japanese exports to China climbed 3.8 percent, while the shipments to the United States declined 3.4 percent.

Last month's devastating earthquake and tsunami destroyed manufacturers' facilities and severely disrupted global supply chains. Major manufacturers including Toyota Motor Corp. were forced to temporarily suspend its output at home factories following the twin disasters.

For fiscal year 2010, however, the ministry noted that Japan booked a 5.3 trillion yen (64 billion U.S. dollars) trade surplus. And the country's exports for the year expanded by 14.9 percent, marking the first rise in three years.

The figures indicated the nation's export-led economic recovery was beginning to show signs of gaining traction prior to the devastating affects of the March 11 quake and tsunami.

The earthquake and tsunami killed or left missing more than 27, 000 people. The government estimated the damage from the disaster may cost as much as 25 trillion yen (302 million U.S. dollars).

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