Japan sees 12.5% drop in exports

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Japan?s exports have dropped by 12.5 percent in the month of April (compared to its previous year), after the earthquake and tsunami disrupted life in the country. This fall in exports have led the country?s trade balance into a deficit of 463.7 billion yen ($5.6 billion).

Following the 11 March earthquake and tsunami that crippled electricity generating plants, the country had to import large amounts of fuel and this surged the country?s imports to a 8.9 percent, thus recording higher price for commodities.

Japan?s economy, the world?s third largest, slid back to recession in the first three months of 2011 due to the natural calamities. The destruction to factories had forced several manufacturers to suspend production.

The country?s economy has now contracted for two consecutive quarters, which is the general definition for recession.

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