First, exports declined sharply due to the supply-side constraints caused by the disaster, while imports of intermediate goods increased to make up for shortages in domestic supplies. Second, shutdowns of nuclear power plants led to an increase in imports of crude oil, liquefied natural gas, and other fossil fuels used for thermal power generation.
And third, the slowdown in overseas economies and the appreciation of the yen since autumn 2011, as well as the flooding in Thailand, weighed down exports. Thus, a combination of various factors was behind the trade deficit for 2011. The supply-side constraints and the flooding in Thailand are, however, temporary factors and are unlikely to affect exports and imports hereafter.