Japan's current account recorded its largest deficit on record in January, reaching 172.8 billion yen ($US1.8 billion). It was its first deficit in 13 years.
The current account measures the balance between a country's exports and imports - a deficit means more imports.
Government figures show that exports nearly halved in January, while imports fell by a third.
Japan is being hit by falling demand for its products abroad, as the global recession takes hold.
The BBC reports exports in January dropped a record 46.3% from a year earlier to 3.28 trillion yen - the fourth consecutive month of year-on-year declines. Exports to the United States were the hardest hit, registering a 52.9% drop.
Car exports alone dropped 66.1%, with semiconductor and electronic parts exports down 52.8%.
