Japan’s export inactivity brings threat of longer economic slump at home and overseas
June had seen Japan’s exports recording a double-digit decline for four consecutive months. This suggests that the novel coronavirus pandemic tipped the world’s third-largest economy into its sharpest postwar slump, highlighting the possibility of a long and sharp global contraction.
The country’s exports dropped 26.2% in June from a year ago, data from the Ministry of Finance showed on Monday. The reading came sharper than the 24.9% decline predicted by economists in a Reuters survey. However, this placed milder than the 28.3% drop monitored in May- the sharpest decline since September 2009.
Worldwide demand for cars and other durable products has dropped since March as the virus crisis prompted many countries to implement lockdowns. Though more countries have resumed their economic operations, the trade data could drag optimism for a quick recovery in demand and in Japan’s export-reliant economy.