Japanese trade tanks

I don’t bother covering Japan much its price effects in the global economy (for Australia) are subsumed by China these days but it is worth noting that data today showed exports plunged -12.9% in January and imports tanked -18%. Exports to Asia were -17.8% and to China -17.5%. Some of this is commodity prices but not all as the export numbers show. All year or year:

 

Given Korean exports tanked -18% in the same month I think it fair to say that North Asia slowed quite a lot in January!

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the fouding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

Comments

  1. How does that compare to GFC trade slowdown?

    Is this a leading indicator, while we look at it as a lagging indicator resulting from some incident or other. Perhaps we have had THAT incident !

    • Seems like your call from a few weeks back (and Janet had the same idea from memory) about things turning pretty sour were right…liquidity crunch and all …

      • SENIOR BOJ OFFICIAL: BOJ HOLDS ROUGHLY 7.8 TRLN YEN IN ETFS AS OF SEPT 2015, WHICH IS 54 PCT OF JAPAN’S TOTAL ETF MARKET – RTRS

        Its. Pure. Madness. (as of Sep, they’ve prob bought more since)

        But hey, I’m not a Central Banker, so what the heck would I know

  2. Would some of the drop in import would be linked to cheaper gas and oil? The number is still pretty scary though.

  3. Looks like a global recession to me. Those Asian economies are so insanely leveraged to world trade.
    South Korea from memory has exports as over 40% of GDP from memory

  4. proofreadersMEMBER

    Poor old “pyromaniac” Central Banker Kuroda!!! He can’t take a trick. It looks like he is going to have to throw some more “petrol” (QE, negative interest rates etc etc) on the “funeral pyre” that is the Japanese economy.