Japan'S Exports Drop Unexpectedly And Economic Downturn Continues

Japanese exports fell for the fourth consecutive month, the biggest drop since 2009, highlighting Japan's last recession in the last quarter.

Continued downturn.

Japan's Ministry of Finance said Thursday that exports in January dropped by 12.9% over the previous year, a drop higher than expected.

Imports dropped by 18%, with a trade deficit of 645 billion 900 million yen ($5 billion 700 million).

Japan's exports to China in January dropped by 17.5% compared with the same period last year, the latter being Japan's largest trading partner.

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Turbulence has made businesses more vulnerable to spending and depressed global demand.

This is not a good thing for Japanese exports, "said Tokai Tokyo Research Center chief economics Hiroaki Muto before data release.

"As domestic consumption continues to weaken, exports and production weaken or slow down capital expenditure in the coming months, Japan has no impetus for economic growth."

The government released a report on Monday that the economy contracted in the fourth quarter of last year, GDP fell 1.4%, and 1.3% in the third quarter.

The decline in exports, coupled with the lack of confidence, wage growth has stagnated, consumer prices have barely risen, families are reluctant to spend.

Japanese stocks have tumbled this year and the Japanese yen has appreciated by more than 5% against the US dollar. The market has doubts about China's slowing economy and the US economic growth. Xin Cun

The Japanese economy, which has been swinging back and forth between moderate growth and contraction, is even worse.