Japanese exports fall amid bearish global economic outlook
21 Nov 2011
According to Japan's finance ministry, shipments abroad were down 3.7 per cent in October from the previous year, the first drop in three months and an indication the nation's rebound from the record March earthquake would slow, even as dragon economy Singapore said its growth would stay around 1 per cent next year and China said the global economy faced an extended downturn.
According to analysts, the reports may lead to increased pressure on policy makers in export-driven Asian economies to implement further stimulus measures.
A record of the Bank of Japan's 27 October meeting today showed a board member favoured adding ¥10 trillion in asset purchases, and Chinese vice premier Wang Qishan said his nation would adopt ''forward looking'' and flexible monetary policy (See: China calls for US cooperation to fight global economic distress).
According to analysts, things were likely to get worse before they got better and export growth would slow across Asia and there might be financial shocks coming through. They say Asian policy makers would become stimulatory all over again.
According to Singapore's trade ministry, the nation's gross domestic product might rise 1 per cent to 3 per cent in 2012, following a 5 per cent increase this year, but the projection had not factored in the European recession. (See: Singapore economic growth projected lower at 1-3 per cent in 2012)
Wang said at a financial work meeting in Hubei province that the world economic situation was ''extremely severe'', according to a state news agency Xinhua's report of 19 November. The news agency cited Wang as saying that the global economic recession triggered by the international financial crisis would be long-term.
