Japan exports, imports fall due to pandemic
TOKYO (AP) – Recession-hit Japan’s exports plunged by nearly 22 percent in April, marking their worst drop in more than a decade as the coronavirus pandemic slammed global demand for autos, machinery and chemicals.
Imports fell by seven percent from a year earlier, according to Finance Ministry data released Thursday.
The drop in exports was the worst since October 2009 – amid the fallout from the global financial crisis – as export-dependent Japan struggles to juggle the health risks of COVID-19 with the dire need to keep the economy going.
Exports to regions most badly affected by the pandemic took the biggest hits.
Shipments to the US plunged 38 percent, while imports rose 1.6 percent, causing the politically contentious trade surplus to decline by 75 percent from a year earlier, to ¥181 billion ($1.7 billion).
Japan’s exports to the European Union tumbled by 28 percent in April, while imports from the region declined seven percent.
Trade with China, which was the early epicenter of the virus outbreak and is now reviving its economy, was less affected. Exports slipped four percent and imports from China jumped 12 percent year-on-year.
Overall, exports totaled 5.2 trillion yen ($48 billion), down from nearly ¥6.7 trillion in the same month in 2019. Imports dropped to ¥6.1 trillion ($57 billion) from 6.6 trillion yen.
By sector, exports of vehicles, machinery, chemicals and textiles fell most sharply.
Automakers, like Toyota Motor Corp. and Honda Motor Co., which form a pillar of the economy, have reported nose-diving profits as sales shrink around the world and plants in some parts of the world stop production.
“The drop in auto exports, reflecting the lockdowns in Europe and the US, is really working to drag down the numbers,” said SMBC Nikko Securities chief economist Junichi Makino, noting electronics exports had held up better.