Shipments to the European Union dropped a staggering 21.1 per cent as the continent’s debt crisis remains entrenched.
Overall, Japan’s exports tumbled by 10.3 per cent in the year to September, their sharpest decline since the aftermath of last year’s earthquake.
“On a seasonally-adjusted basis, exports actually increased for the first time since April, albeit by only 0.9 per cent month on month,” noted Capital Economics.
“Weakness in the global economy is the main headwind to exports, but Japan’s ongoing dispute with China over the Senkaku/Diaoyu islands is providing an additional drag. Automobile exports to China plunged 44.5 per cent year on year in September.”
Adding to the gloom, the Bank of Japan cut its economic assessment for eight out of nine regions in the country, as growth paused due to the global economic slowdown.
The Bank could announce more monetary easing next week.