Friday, January 25, 2013

Japanese Exports Worldwide are Crashing


There's a bunch of confused people who think, because the yen is going down and the Nikkei is going up, the Japanese economy is on the mend.
They are completely wrong.
Japanese exports to China and to the entire world are crashing.
In November they were down 14.5%; in December, 15.8% to ¥906 billion. Worst hit were cars, trucks, and parts (-47.5%), machinery (-22.2%), and electrical machinery, which includes tech products like semiconductors (-16.8%). Imports from China edged down by 2.1% to ¥1.24 trillion. And the trade deficit jumped by 76.8%.
This debacle is unrelated to the strength of the yen. It’s caused by the deteriorating relationship between two of the world’s largest trading partners. 
And, folks, that's not all good about the yen decline. In fact, it couldn't be worse.
Knocking the yen off its lofty perch—it’s down 11% against the dollar and 15% against the euro since November—won’t have much impact. In that respect, Abe’s cure won’t work.
Then there’s Europe. In December, exports skidded by 12.3% to ¥561 billion, after having plunged 20% in November. To Germany, which now may be in a recession, they declined by 9.2%, to the UK by 10.2%, to France by 16.8%, to Spain by 26.2%, and to Italy by 28.2%.
Read more at Zerohedge.

1 comment:

  1. Not just Japanese trade, but world trade is in serious trouble. How does that bode for export driven economies?

    http://shtfplan.com/wp-content/uploads/2012/12/BalticDryIndex1.gif

    http://www.blacklistednews.com/Baltic_Dry_Index_Report_Shows_The_Global_Economy_Is_In_Serious_Trouble/23075/0/38/38/Y/M.html

    ReplyDelete

Comments must be succinct & relevant to the story. Comments are checked frequently and abusive, rude or profane comments will be deleted. I’m just one of many bloggers who answer questions online and sometimes for the press. I usually handle questions about Japan, marketing or the economy, so in those areas I’m more likely to make sense and less likely to say something really stupid. If I post something here that you find helpful or interesting, that’s wonderful. This is my personal blog. If you don't like what you have read here then, just like when you go into a restaurant or bar that allows smoking, if you don't like it, there's something at the front that has hinges on it and it is called a "door."