Japan exports tumble as global downturn bites

Carrie Reinheimer November 13 2008 8:23pm

What is going on wiht Japan. They are too now seeing a downturn in their economy. Japan's exports tumbled nearly 10 percent from a year earlier in the first 20 days of October, evidence of how quickly the global economy deteriorated after the financial crisis struck in mid-September. Other data showed Japan's current account surplus in September halved from a year earlier, corporate bankruptcies hit their highest level this year and sentiment in the services sector hit a record low. Japanese companies also relied more heavily on bank loans as the financial turmoil made it more costly by comparison for them to issue commercial paper. Japan's exports fell 9.9 percent from a year earlier in the Oct. 1-20 period, putting the trade balance into the red during that time, Ministry of Finance data showed on Tuesday. Economists say Japan, the world's second-biggest economy, is teetering on the edge of recession. Third-quarter gross domestic product figures are due out next Monday. Tight financial conditions and a weakening economy are also leading to increased bankruptcies. Japan's corporate bankruptcies rose 13.4 percent in October from a year earlier to 1,429 cases, the highest level this year, a research firm said on Tuesday. A record eight listed companies went bankrupt in October, seven of them in real estate and construction-related industries. Japan's economy shrank at the fastest pace in seven years in the second quarter, and some economists think it may have contracted again in the July-September third quarter, which would meet the common definition of a recession.This is one country that I thought would not see the same crisis that the rest of the world is seeing. I think it is crazy that Japan is starting to see an economic crisis. I don’t know why I am really surprised because everyone else is doing badly why not them to. I think that eventually everyone is going to be in an economic crisis. It will be interesting to see where we are in 4, 10, or even 20 years. To tell you the truth I have no idea what it will be like. I hope that it looks good for the economy all over the world but who really knows.

http://www.forbes.com/feeds/reuters/2008/11/11/2008-11-11T071556Z_01_T154686_RTRIDST_0_FINANCIAL-JAPAN-UPDATE-2.html