( Tokyo, 20th jULY 2020 ) As the new crown virus pandemic has dealt a heavy blow to global demand, Japan's exports in June saw double-digit declines for the fourth consecutive month, reinforcing expectations that the Japanese economy has fallen into the worst recession in decades.
Japan’s exports to the United States are once again close to being cut in half, as demand for automobiles and auto parts has fallen sharply, while exports to China are still weak, indicating that the global economy lacks a strong growth engine.
Global demand for cars and other durable goods has declined since March. The epidemic has prompted many countries to implement lockdowns, forcing companies to close their doors and people staying at home.
Although more countries have begun to restart their economies and economic activity may have bottomed out, the data may weaken hopes for a rapid rebound in global demand and Japan’s export-oriented economy.
Data from the Japanese Ministry of Finance on Monday showed that exports in June fell 26.2% from the same period last year, exceeding the 24.9% drop estimated by analysts surveyed by Reuters.
In May, it fell by 28.3%, the largest drop since September 2009.
Auto exports to the United States fell sharply compared with the same period last year, exacerbating the decline in exports. Exports to the United States fell by 46.6% in June, because automobile exports fell 63.3%, aircraft engine exports fell 56%, and auto parts exports fell 58.3%.
Japan is the world's second largest exporter of automobiles. In 2018, the United States was Japan's largest export market, followed by China, mainly exporting automobiles, engines, auto parts and wafer manufacturing machinery.
In addition, exports to China in June decreased by 0.2% year-on-year, due to the decline in shipments of wafer manufacturing machines and chemical materials, which overwhelmed the increase in shipments of non-ferrous metals and automobiles. China is Japan's largest trading partner.
In June, exports to Asia decreased by 15.3%, and exports to Europe decreased by 28.4%. Exports to Asia account for more than half of Japan's total exports.
Japan’s first quarter fell into recession for the first time in four and a half years, and it may fall into the worst post-war slump. The epidemic crisis has put heavy pressure on businesses and consumers.
**Info & Image are taken online
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