In what can be seen as yet another disquieting addition to the existing murkiness over the slow down in export-led economy, Japan has unexpectedly reported a trade deficit for October; with the country’s exports having plunged for the first time in three months.

According to Japan’s Ministry of Finance, the month of October witnessed a 3.7 percent year-on-year decline in shipments, pushing the country’s trade into a deficit --- with imports rising due to high fuel costs; and exports falling because of the debt crisis in Europe as well as the ravaging floods in Thailand.

It is being warned by the economists that Japan’s balance of trade in goods will likely continue to remain in the deficit zone for the next few months too; making it evident that there are chances that the economy will be all the more dependent on any stimulus effects from a new ¥12.1-trillion extra budget which will probably be passed by parliament later on Monday.

Analysts are of the opinion that the fall in Japan’s exports was steeper than anticipated – the projected figures hinting at a 0.3 percent decline – is an indication that there has been a rather severe plunge in demand from countries struggling with their own economic crises.

Commenting on the situation, Norinchukin Research Institute’s Takeshi Minami said: “Exports will likely continue to fall for the next few months as the global economy is expected to continue to have an adverse impact.”