Japan's exports in March fell for the first time in
16 months, hit by the fallout from last month's massive earthquake
and tsunami, which destroyed factories and crippled supply chains,
the government said Wednesday.
Auto exports especially took a beating in the month as the twin
disasters forced Toyota, Honda and Nissan to suspend their all
Japanese production due to shortages of components.
Vehicle exports, which account for 10 percent of Japan's total
shipments, plunged 27.8 percent in March, the finance ministry said.
U.S.-bound auto exports dropped 27.2 percent with vehicle shipments
to Asia down 23.4 percent.
"It is very frustrating for automakers and other manufacturers.
Despite steady demand abroad, they simply could not make their
products due to a supply crunch following the disasters," said
Hiroshi Watanabe, an economist at the Daiwa Institute of Research.
Overall exports in March declined 2.2 percent to 5.87 trillion
yen ($71 billion), marking the first year-on-year fall in 16 months.
Imports rose 11.9 percent to 5.67 trillion yen last month, the
ministry said.
The magnitude-9.0 earthquake and ensuing tsunami on March 11
destroyed many factories in northeastern Japan, crippling production
and supply chains. The disasters also damaged ports and a major
airport in the region, severely hampering exports. The human toll,
too, was vast, with some 25,000 people killed.
Hajime Inoue, an economist at the Japan Research Institute,
warned a fall in exports could widen to 20-30 percent in the coming
months.
"At least for March, some manufacturers were able to keep
limited output by relying on stock. But by now, stock will be gone,
forcing companies to completely shut down production," he said.
By regions, Japan's exports to the United States declined 3.4
percent to 828.7 billion yen, the first year-on-year fall in 15
months. Asia-bound exports slipped to 3.4 trillion yen, marking the
first fall in 17 months.
Japanese exports to China edged up 3.8 percent, while those to
the European Union grew 4.3 percent in March, the ministry said.
