Wednesday, March 25, 2009

Japan's February exports halved


Japan's exports saw a record plunge in February, falling by nearly half compared with a year earlier, according to the country's finance ministry.

Exports fell 49.4% year-on-year to 3.526tn yen ($36bn; £24.6bn), though this was in line with forecasts.

The latest data comes after figures for January showed year-on-year exports nearly halved that month as well.

The world's second-largest economy is suffering in the downturn as demand for its products has collapsed.

Surplus

Exports in January declined 45.7% year-on-year.

Japan, which is especially reliant on exports, has been hit as consumers worldwide tighten their belts in a move to cut costs.

"Japanese growth was exclusively dependent on exports," said Professor Noriko Hama at Doshisha Business School in Kyoto.

"It was natural that Japan would be hit a lot more severely than other countries."

Car exports dropped more than 70% for February. Car firms are cutting jobs and reducing shifts in response to slowing demand.

But on the upside, Japan's trade balance was in surplus in February after a record deficit in January, because the decline in exports was offset by a sharp fall in imports, which were 43% lower for the month.

This surplus last month, which reached 82.4bn yen ($841m), was the first in five months.

Japan, which is officially in recession, saw its economy contract by an annualised 12.1% in the last three months of 2008, the biggest contraction among developed countries.

The government is working on a third stimulus package, which local media reports have estimated will be worth 20 trillion yen.


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