New figures show the Japanese economy has taken the biggest dive for thirty five years.
Japan has not suffered directly from the crash in the US credit and housing market, but its heavy dependence on exports and low domestic consumption caused the massive fall. The Japanese car industry has been badly hit with many thousands of new vehicles unsold and staff in car companies being laid off or on short time. It is the same story in Japan’s world leading hi-tech industries, computers and many other goods are not selling, bringing factory lines to a halt. Japanese economists believe the US stimulus package will have an effect on Japanese exports and the country’s economy might start picking up from April. But after export orders plummeted, so far even the optimists are predicting only modest rises.