Japan posts record current account deficit in January, 1st deficit in 13 years

* Shino Yuasa, Associated Press Writer
* Monday March 9, 2009, 6:46 am EDT

TOKYO (AP) -- Japan posted a record current account deficit in January, plunging into the red for the first time in 13 years due to plummeting demand for Japanese exports and a deepening global downturn, the Ministry of Finance said Monday.

The deficit stood at a record 172.8 billion yen ($1.8 billion) in January, far bigger than the previous deficit record of 25.6 billion yen in January 1996, the ministry said.

The current account is Japan's broadest measure of trade in goods and services with the rest of the world.

"We incurred the current account deficit due to a plunge in exports. Our exports to key regions, including the United States, Europe and Asia, were all down sharply due to the deteriorating global economy," said ministry official Michito Yamagami.

Exports in January dropped a record 46.3 percent from a year earlier to 3.28 trillion yen, marking the fourth consecutive month of year-on-year declines. Imports fell 31.7 percent to 4.13 trillion yen, resulting in a trade deficit of 844.4 billion yen in January.

The current account is calculated by determining the difference between Japan's income from foreign sources against payments on foreign obligations and excludes net capital investment.