Exports of the world’s third economy plummeted by nearly 22 percent in April compared to a year earlier. This is the strongest contraction since the 2008 financial crisis. In March, Japanese exports already fell by almost 12 percent. Imports from Japan fell by more than 7 percent last month.
Exports from Japan to the United States, India, Australia and European countries in particular declined sharply, due to lockdown measures. In particular, exports of Japanese cars fell.
Furthermore, Jibun Bank and research firm Markit reported that activity in Japanese industry is shrinking even more this month. The purchasing managers index that measures activity, according to a preliminary position, came to 38.4 from 41.9 in April. That is the strongest contraction since the financial crisis. A figure of more than 50 indicates growth, below which there is contraction.
The indicator for the Japanese services sector, with for example catering, shops, tourism and aviation, showed some improvement, from 21.5 to 25.3. The Japanese economy has entered a recession due to the corona crisis.