Japan Exports Plunged 49% in February as Global Slump Deepened

Discussion in 'Economics' started by ASusilovic, Mar 24, 2009.

  1. March 25 (Bloomberg) -- Japan’s exports plunged by a record in February as deepening recessions in the U.S. and Europe sapped demand for the country’s cars and electronics.

    Overseas shipments plummeted 49.4 percent from a year earlier, the sharpest decline since at least 1980, when the government started to keep comparable data, the Finance Ministry said today in Tokyo. Economists predicted a 47.6 percent drop.

    Prime Minister Taro Aso is compiling his third economic stimulus package as a deepening slowdown in Japan’s overseas markets puts thousands out of work at home, threatening domestic demand. Finance Minister Kaoru Yosano said this week said that a new package of as much as 20 trillion yen is “not out of line” as the economy heads for its worst recession since 1945.

    “There’s been a structural shock to the manufacturing sector,” said Hiroshi Shiraishi, an economist at BNP Paribas in Tokyo. “So yes, the government can create demand temporarily, but that can’t fill the export gap forever.”

    Japan’s gross domestic product shrank an annualized 12.1 percent last quarter, the biggest contraction among the advanced economies and the country’s sharpest decline since the 1974 oil crisis. Toyota Motor Corp., forecasting its first net loss in 59 years, yesterday said overseas shipments plunged 69 percent in February from a year earlier.


    http://www.bloomberg.com/apps/news?pid=20601087&sid=arHdI4EAA_9w&refer=home

    I think Jim Rogers lately recommended buying JPY...
     
  2. These are compounding bad numbers. Only great depression numbers come close to these ones.

    Its bad and getting worse no matter what BS Washington is sending out.
     
  3. 2010 will be far worse than 2009.

    Trying to turn the economy around is like turning a supertanker around when it's full steam ahead, and that's with no further job losses.

    Add continuing job losses and a frightened consumer to the mix, and it's akin to turning a supertanker around when there's no fuel left in the tank.

    The government stimulus was a thinly veiled bailout of local, county and state units of government, with some token earmarks added here and there - hardly enough to stimulate anything but the growing budget deficits and national debt.
     
  4. But the Fed reserve can just print money.
     
  5. I think they tried that one in Japan, for like 20 years...
     
  6. Doesn´t matter. Nikkei is raising any way. Bad headlines activating dip buying, lately. Nikkei up + 21,5 % from lows...
     
  7. If you're one who bought in at Nikkei 15,000, 20,000, 25,000, 30,000, 35,000 or 40,000, especially if you were 25 or older when you bought, and as the Nikkei hit nearly 40,000 20 years ago, I don't think one would be too happy with this performance, especially if they had the 'conventional' allocation into equities, and as they draw closer to retirement.
     
    #10     Mar 25, 2009