In non-seasonally adjusted terms, Japan’s exports dropped a massive -11.7% yoy in March while imports dropped -5.0% yoy. Trade surplus came in at just JPY 4.95B. The contraction in export was the worst since July 2016 as shipments to major destinations like China, US and EU were choked by the coronavirus pandemic. The impact will likely continue in April and onwards until global lockdown exits. In seasonally adjusted terms, exports dropped -4.1% mom while imports rose 7.2% mom. Trade balanced turned into JPY -0.19T deficit.
Separately, Reuters reported that the government is going to boost its economic rescue package by 8% to JPY 117. A major change is inclusion of JPY 100k cash payout for to every citizen, on top of JPY 300k payout to households affected by the pandemic. The government is also planning to issue extra bonds worth JPY 25.7T to fund the revised budget.
