Japan current account plunges

Falling exports continue to take toll on world's second-largest economy.

    Japan's exports plunged 46 per cent in
    January from a year earlier [EPA]

    Japan's exports in January dropped a record 46.3 per cent from a year earlier to 3.28 trillion yen, marking the fourth consecutive month of year-on-year declines as the country grapples with its worst recession in decades.

    Japan's exports to the US fell 52.9 per cent, while shipments to Asia dropped 46.7 per cent from a year earlier.

    Exports to the European Union fell 47.4 per cent.

    Job cuts

    The sharp drop in exports has triggered production and job cuts among manufacturing giants such as Toyota and Sony, and put the economy on course for its longest recession in the post-war era.

    Japan's income surplus slipped 31.5 per cent from a year earlier, due to lower interest rates and dividend payments from overseas.

    A stronger yen in January also reduced the value of income from overseas investments, a finance ministry official said.

    Akira Maekawa, a senior economist at UBS, explained that "we have seen the declines in exports, and now we see the income balance declining because the global financial crisis is cutting earnings on overseas investments".

    Maekawa told the Reuters news agency that this was "a bad development for an export-oriented economy" and warned of a "further deterioration in the current account balance".

    The country's benchmark Nikkei stock average fell 1.7 per cent to a four-month low in Monday morning trade.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    Heron Gate mass eviction: 'We never expected this in Canada'

    Hundreds face mass eviction in Canada's capital

    About 150 homes in one of Ottawa's most diverse and affordable communities are expected to be torn down in coming months

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.