Japanese exports down by 50%
Japan has had a further knock-back as the economy struggles with the announcement that in February there was a 49.4 percent drop in exports after the latest data published by the Japan’s finance ministry.
Exports have been hit hard, both in the US and in Europe, which has experienced more than a fifty percent drop but China has similarly experienced a fall in demand, with Japan experiencing a 40 percent drop.
The impact on Japanese trade is a further indication that the world has stopped buying Japanese goods, as both car sales and electronics have experienced a very tough time – both across the developed and emerging markets.
It had been hoped that emerging economies would stem the flow of falling shipments, however February was the fourth straight month of declining exports.
There is a huge inventory overhang which has badly affected the Japanese economy as Japanese companies were previously seen as being highly dynamic in decision making and have been able to respond to the fall in international demand.
As a result, production had been cut back almost immediately and shifts cut and redundancies made efficiently across all the struggling sectors in order to ride the storm.
Japan’s carmakers have been the hardest hit as shipments of Japanese cars have fallen by 63 percent, with a 71 percent reduction in the number of Japanese cars heading to the US.