The coronavirus crisis is consuming one economy after another. Now it is Japan’s turn to suffer a crushing defeat in the economic fight against the pandemic consequences. Business activity in Japan has hit a record low, and exports have been incurring massive losses.
According to Japan’s Ministry of Finance, in the period from April to September this year, export volumes of Japanese goods to the international market shrank by 19.2% year-on-year, recording the biggest drop in almost a decade. No wonder, Japan’s export-reliant economy has sunk into a recession. The decline in trade indicators was due to a significant reduction in demand for Japanese-made cars and other essential goods during the COVID-19 pandemic. However, in September, the volume of car deliveries almost recovered to the pre-crisis level, the Ministry stressed. At the same time, local authorities were able to balance trade surplus, which in September was equal to almost $6.4 billion.
Imports to Japan also contracted by more than 17% over the past six months, partly due to lower prices for oil and liquefied natural gas. The country buys these commodities from foreign suppliers.
