Japan’s economy is expected to have contracted slightly more than initially estimated in the final quarter of 2015, and ominously the outlook held little cheer as domestic and external demand has remained stubbornly weak at the start of this year.

Japan reported its first annual trade deficit since 1980 as it imported expensive energy to offset shortfalls caused by the devastating tsunami and manufacturers shifted production overseas to avoid the damage inflicted by the strong yen.

Japan’s current account surplus in July fell 19.4% from a year earlier as exports tumbled amid a slowing recovery in the global economy, the finance ministry said today.

Japanese exports plunged a record 26.7% in November, the Ministry of Finance said today.