Japan’s exports dive led by cars’ reverse

Japanese exports fell by almost half in February from a year earlier, dragged down by plunging car sales to the United States and Europe.

Exports crashed 49.4%, the sharpest decline since the Japanese Ministry of Finance began compiling comparable data in 1980, but that was generally in line with economists' expectations.

Demand plunged in all regions of the world, particularly North America, Europe and Russia. The dismal figures highlight the grim outlook for Japan's export-oriented economy, which is the second largest in the world. Japan, which had relied on foreign sales of its cars and gadgets to drive economic growth, now finds itself in its deepest recession since the end of the Second World War.

The International Monetary Fund expects the economy to contract 5.8% for the 2009 calendar year, though many economists predict it could be far worse.

Shipments of cars plummeted 64%, with those to the US down 71%. Overall exports to the United States fell 58% while those to EU countries were down 55%.