Japan exports fell 50%

Discussion in 'Economics' started by power, Mar 25, 2009.

  1. power


    TOKYO (AP) -- Japan's exports fell by nearly half in February from a year earlier -- a record drop -- the government said Wednesday, dragged down by plunging auto shipments to the U.S. and Europe.

    Exports tumbled 49.4 percent, the sharpest decline since the Ministry of Finance began compiling comparable data in 1980 but generally in line with economists' expectations.

    Demand plunged in all regions of the world, particularly North America, Europe and Russia. The dismal figures highlight the grim outlook for Japan's export-oriented economy, the world's second-largest.

    Japan, which had relied foreign sales of its cars and gadgets to drive economic growth, now finds itself mired in its deepest recession since the end of World War II. The International Monetary Fund expects the economy to contract 5.8 percent for the 2009 calendar year, though many economists predict it could be far worse.

    The slowdown has also sapped demand for imports, which fell 43 percent in February from a year earlier.