Posted on 02/24/2009 10:34:26 PM PST by TigerLikesRooster
Japan’s January exports down 45% year on year
TOKYO, Feb 25 - Japan’s exports nearly halved in January from a year earlier, pushing its trade deficit to the biggest on record, in further evidence that the global financial crisis is paralysing the world’s second-largest economy.
Exports to Asia slumped at a record pace as manufacturing within Asia, which had thrived on robust global growth until last year, slumped as Western consumers curtail their spending.
”Exports to Asia, particularly to China, are tumbling at about the same pace as shipments to the United States, signalling that even China’s economy may be shrinking,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
”We don’t see any signs of a pickup in the Japanese economy in the near term. The economy will gradually worsen further.”
Exports plunged a record 45.7 per cent in January from a year earlier, Ministry of Finance data showed on Wednesday, roughly matching a median market forecast. The month was affected by the Lunar New Year, during which some Asian export markets were closed for several days.
Exports to Asia sank 46.7 per cent, the fourth straight month of decline, with shipments to China falling 45.1 per cent.
Many Japanese companies ship automobile and consumer electronics parts to assembly lines in Asia, from which final products are shipped to countries across the globe.
(Excerpt) Read more at ft.com ...
Ping!
Yikes!
With Japan running a trade deficit, they have less of a current account surplus with the US with which they can buy US debt.
This is going to have repercussions for interest rates on US sovereign debt at some point down the line.
Japan running a trade deficit? I’ll bet the last time this happened was in 1973 with the Arab oil shock
You know things are really bad when the Nips run a trade deficit
Japan is the canary in the coal mine. The canary ain’t looking too good.
Japan will soon start calling in US debt instruments as a means to shore up their own country.
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