Japan Gripped by Global recession

Japan is mired by deepening global recession as exports halved for a second consecutive month in February.Exports in January had been dismal as well. In Fx trading yen is being expected to stay on the back foot having regained some ground after dropping against the euro and the Australian dollar yesterday.

Japanese economy is exclusively export based:
As one of the world's largest export based economy Japan has suffered more setback than other countries. The island country has recorded a 49.4% plunge in its exports even as consumers all over the world tighten their belts to cut costs.

Car exports have been most adversely affected in particular having fallen more than 70% in the last month.Diminishing global demand has forced Car manufacturing firms to cut jobs and reduce shifts.

Another stimulus package anticipated:
Japan has officially been in recession since October last year when it saw an annual growth contract of 12%. The contraction had been one of the biggest ever in developed nations.

The government is expected to introduce a third round of stimulus package worth 20 trillion soon.