Tuesday February 17, 2009

Japan exports plummet record 35% as recession deepens

bloomberg.com :

Japan's exports plunged by a record in Dec 2008, signaling companies will be forced to shut factory lines and fire more workers, driving the economy deeper into recession. Exports plummeted 35% from a year earlier, the sharpest decline since 1980. The December drop eclipsed a record 26.7% decline set the previous month. Shipments to the US, China and Europe fell by the most ever, as the global recession dried up demand for Japanese cars and electronics. Toyota, Sony and Honda are shedding thousands of workers and closing production lines as profits and sales dwindle.

- For countries with export-oriented economies, the exports figure is naturally a leading indicator of economic activity. In other words, what the export figures show, GDP figures are likely to follow. Singapore had its 20.8% NODX exports drop, and it is said that Singapore and Taiwan could have GDP contractions of 10-11%. With the kind of figures being released for Asian exporters nowadays, it looks like 20-30% contractions are not entirely out of the question. A GDP contraction of 10% or more would be going into Second Great Depression territory.

See also :

1. Japan middle-class shrinks
2. Japan economy shrinks 2.4% as exports decline; recession looms
2. Japan GDP shrank annual 3% in Q2 2008, revised figures show
3. Singapore, Taiwan GDP may shrink 10-11% in 2009 : CLSA
4. Nissan to slash 20000 jobs in mass layoff, sees annual loss in 2009

(2009-02-17 13:34:31 SGT) [Biz] Permalink

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