Japan exports crash again
Posted by admin . Published on 28 February 2009, Received
Japanese exports have crashed by over 20% in the last few months, due to their over dependence on US and Europe. Japan traditionally have been exporting huge number of cars and automobiles to US and Europe.
With these economies in deep trouble, and massive job cuts, both have drastically cut down their imports. That has resulted in Japan seeing record crash in their exports which in turn cut down their trade surplus to near zero levels.
With no trade surplus, and with more money needed to prop up their sagging economy, Japan can be expected to pull back some of its dollar investments in US treasuries over the next few months. That could put US into a tail spin, which in turn could put further strain on Japan’s economy.
