Japan has released day saying that their exports have plummeted by 45.7% in just one year’s time, making it the lowest figure since the end of WWII. Just as shocking is that contained in this date is a 69% decrease in Japanese cars demanded, showing that not only GM is feeling the crunch. China is also sharing in the recession, with similar numbers being posted by Japan’s not so distant neighbor. Companies are expected to make large job cuts, with electronics juggernaut Sony cutting nearly ten thousand positions, which is an unfortunate example of the American recession being brought to the doorstep of Japanese citizens. To combat this, much like the U.S., Japan’s government is pushing out a series of legislature to help ease the pain domestically, such as a set of stimulus packages that will provide marginal relief. Interesting to note is that President Obama will be working directly with the Prime Minister of Japan on the problem.
It’s hard to comprehend the numbers found in this article. Has demand really shrunk exports to a meager 55% of what they were last year? It seems nearly impossible and downright scary to the think that this recession is so powerful that it can in a single year tear a countries production in half. While I can’t imagine that February will be much better, it is heartening to see that the Prime Minister and President Obama are actively working on a solution, as should the two top economies in the world falter to this degree it can only spell disaster for the rest of the world.
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