Japan’s Wrong Kind of Economy Backfires
Posted by msrb on December 22, 2008
Is Automobile Obsolescence Responsible for Automakers’ Economic Woes?
Japan’s exports and business confidence fall sharply as the country’s recession deepens
Japan reported its worst ever drop in exports in November, as the interest rates were cut to 0.1 percent and $54 billion in additional government spending was announced. According to a Reuters Tankan monthly survey, the business sentiment is at its lowest for a decade.
Toyota Motor Co, the world’s top automaker was expected to forecast its first annual operating loss since the war.
Japan’s 10,000-yen note [worth about $111 – see today’s date above.]
A brief scan of Japan’s export results:
- Japan posted a trade deficit of $2.5bn November
- Exports fell at their fastest-ever rate, down nearly 27% from a year earlier
- Demand for Japanese goods has plunged due to a strong yen and a weak global market*
- Japanese exports to the US feel sharply by a record 34%
- Exports to EU countries were down by 31%
- Sales to China fell by nearly 25%
- Exports to the rest of Asia were down by 27%
- Imports were down by about 14% partly due to lower oil prices
The world’s second-largest economy has slid into a recession, its first in seven years. The government expects zero growth in the for the 2009 financial year, which starts March 2010.
*[Note: MSRB Moderators believe automobile obsolescence caused by increasing awareness of anthropogenic climate change is another important factor in the automakers’ economic woes. ]
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This entry was posted on December 22, 2008 at 6:18 am and is filed under automaker, Japan economy, oil prices, operating loss, Yen. Tagged: Japan exports, Japan recession, Tankan survey, Toyota, Toyota profits. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.