It’s Giving Tuesday! Your donation has 3X the impact today. Give Now
Fallout: The Financial Crisis

Drop in exports fuels Japan’s recession

Scott Tong Nov 17, 2008
HTML EMBED:
COPY
Fallout: The Financial Crisis

Drop in exports fuels Japan’s recession

Scott Tong Nov 17, 2008
HTML EMBED:
COPY

TEXT OF STORY

Steve Chiotakis: Here’s why we should care if the economy in Japan is on the skids: it’s the world’s second largest, and it shrank by four-tenths of a percent in the third quarter. The second drop in a row and the official title there of “recession.” But there are different economic mechanisms at work, as Marketplace’s Asia correspondent Scott Tong reports.


Scott Tong: Japan’s recession is not a subprime story; its banks are healthy. The problem is exports — the overseas sales of everything from cars to electronics to heavy equipment.

It’s not just American soccer moms and dads who aren’t buying. The eurozone just entered recession, and China is slowing dramatically, too.

Take the case of Toyota. Its balance sheet now looks so wobbly that its AAA debt rating is now in question. Today, the Fitch ratings agency placed Toyota in the ratings watch negative category.

In Shanghai, I’m Scott Tong for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.