I had pointed China, Korea, Taiwan and India exports have declined sharply. 2 more Asian countries join the club.
- Japan: Japan’s exports have declined by 26.7% in November (WSJ, Bloomberg, see detailed research here). Shipments to the U.S. declined by 34 percent and sales to China slumped the most in 13 years. Imports declined by 14.4 percent, the first decline in 14 months, as oil costs eased and the yen gained. This led to a trade deficit of $2.5 billion, the third shortfall in four months.
- Thailand’s exports declined by 18.6% in Nov. Imports rose 2.0 percent from a year earlier to $13.07 billion in November following a 21.7 percent rise to $15.82 billion in October. The November trade account showed a $1.2 billion deficit after a $558 million deficit in October.
WTO was concerned that trade finance is going to impact the global trade severely. The case looks like of slumping global demand now. World Bank/IMF also said trade volumes might decline in 2009. Simeon Djankov of Crisis Talk Blog pointed that trade finance is not the main concern now.
All these economies (except India) are export-driven and the fall is really steep. The impact on growth is a given. Anoher export-led economy New Zealand is facing severe stress as well. China cut rates y’day and is staring at the barrel. James Kwak says all we can do is wait for Obama plan.