Japan's exports halved in January

Japan's exports halved in January.Japan's current account recorded its largest deficit on record in January, reaching 172.8bn yen ($1.8bn). This is Japan's first deficit in 13 years.In forex trading yen has weakened further.

Corporate blow:
Car exports alone dropped 66.1%, with semiconductor and electronic parts exports down 52.8%.
Consumers around the world no longer want to buy Japanese cars. Consumers in Asia, Europe, the Middle East and the United States are not buying pricey Japanese goods such as cars and electronic goods.

Honda has had to cut production, and Sony is set to register its first annual loss in 14 years.
Shares tumbled on the news, with the benchmark Japanese index, the Nikkei, closing down at a 26-year low.

Dismal Economy:
"We incurred the current account deficit due to a plunge in exports. Our exports to key regions, including the United States, Europe and Asia, were all down sharply due to the deteriorating global economy," a finance ministry official said.
"Japan's export-driven economy is really engulfed by waves of the global economic crisis. “An economist pointed out.


Japan has already passed the legislation to hand out cash to its people as an economic stimulus.