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Japan’s March exports declined the most in four years as demand from China, Europe, and the U.S. fell at the fastest pace since 2011.
Monday’s gloomy data highlighted the pandemic-caused damages on global trade as many prepare for the third-largest economy to reach its biggest drop since the Great Depression.
Japan’s Ministry of Finance reported exports falling further than expected by 11.7% in the year to March. Following a 1% in February, it was seen as the biggest slump since July 2016.
Imports also declined by 5% after previously dropping by 13.9% in February, bringing the country’s trade balance to a surplus of ¥4.9 billion ($45.47 billion).
Exports to China, Japan’s major trading partner, dipped by 8.7% in the year to March. Meanwhile, exports to the U.S. plummeted by 16.5% year-on-year, the biggest since April 2011 and exports to Europe dropped by 11.1%.
In Asia, where demand accounts for more than half of Japan’s exports, slid by 9.4% as the virus continues to spread.
According to the International Monetary Fund, the global economy is predicted to contract by 3% in 2020 as the virus-led inactivity could cause the steepest decline since the 1930s.
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