Economists expect Japan's trade balance to have fallen into the red in January for the first time in 12 months, the result of a Kyodo News survey showed Friday.

The average of the deficit forecasts by 25 private-sector economists stands at 123 billion yen on a customs clearance basis. The Finance Ministry is scheduled to release the data next Thursday.

Japan last saw a trade deficit of 353.5 billion yen in January 2006, the first deficit in five years.

Economists attribute the projected deficit to lower exports by manufacturers due largely to year-end and New Year holidays. Many of them believe the balance will return to the black in February.

"The trade surplus is expected to grow from now on as imports are likely to decline due to falling oil prices while exports are expected to increase, helped by buoyant overseas economies," said Taro Saito, senior economist at NLI Research Institute.