Japan’s industrial output collapses as exports dive

Japan.jpg

Japan has an ageing population. Since 1990, it has relied on exports to boost its economy.

Yesterday, official figures showed industrial production is now being badly affected by the global recession. Output fell 3.1% in October, and a 6.4% decline is expected in November.

Observers forecast the September – December period could see an “unprecedented” total fall of 12%. And unfortunately for the chemical industry, auto production was worst-hit last month.

A vicious cycle is clearly now underway, whereby lost exports will lead to major job cuts, and further reduce consumer spending. Japan’s economy minister, Kaoru Yosano, also warned this would increase “deflationary pressure on Japan’s economy”.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

, , ,

Leave a Reply