Japan exports decline most since 2009 on weak U.S. demand

May had seen Japan’s exports falling at its most rapid pace since the 2009 global financial crisis. This could be attributed to inactive U.S.-bound car shipments and an impending contraction this quarter in the world’s third-biggest economy.

Japan’s exports dropped by 28.3% in the year ended May, official data showed on Wednesday. This came to be the sharpest decline since September 2009 as exports extended double-digit declines for three consecutive months. More so, the figure came way lower than the speculated 26.1% contraction rendered by analysts in a Reuters survey.  

Frail global demand for automobiles and slow-paced business spending are likely to drag Japan’s export-dependent economy. With China-bound trade seen struggling, mainland demand is not capable of alleviating slump monitored in other major trading partners.