The crisis is intensifying in Japan and South Korea in january

We all know : december was a massacre for the economy (globally).

The challenge now is to try to assess… january

Well… it’s going to be worse. Much worse.

The first indicators we have are very bleak. Unprecedented for some.

New vehicle sales in Japan fell to the lowest level in four decades in January as the deepening recession depressed consumer sentiment, an industry group said Monday.

Only 174,281 new vehicles were sold, the lowest level since February 1968, according to the Japan Automobile Dealers Association.

The sales, which exclude mini-vehicles, fell 27.9 percent from a year earlier — the steepest drop since a 45.1 percent plunge in May 1974 in the wake of the first oil crisis.

It was the sixth straight month of falling sales.

“Consumer sentiment has worsened drastically
,” a spokesman for the association said.

Why do we have to care about the situation in Japan ?

Because Japan is a main partner of Thailand (for trade, but also investment).

The car industry in Thailand is held by the japanese…

So when Japan has a flu… Thailand catches a cold (I can translate with figures : when exports from Japan in december drop by 35 %… exports from Thailand fall by 12,5 %).

And another catastrophic, unprecedented, news for the region :

South Korea’s exports tumbled by a record 32.8 percent in January, foreshadowing a deepening slump in Asia’s export-driven economies.

Shipments fell by the most since figures were first compiled in 1957, and at almost twice the pace of December’s 17.9 percent decline, the Ministry of Knowledge Economy said in Gwacheon today. The trade report is among the region’s first economic releases for January. (Bloomberg)

… do we still have any sucker who believe in a “recovery” ?

Yes. I even have his picture.

But believe me : the suckers are now an endangered specie.

2 Responses to “The crisis is intensifying in Japan and South Korea in january”

  1. 1 Prokster 3 February 2009 at 3:45 am

    Although there will be some takers for new Mercs and BM’s, the pick-up segment will be the one taking it on the nose, with small cars second. I think TH will see 20-30% of such capacity vanish this year, from both US & Jap camps. Ditto for parts companies.
    8-10 years at best before production returns to 2007 levels.
    That means a lot of skilled workers will have a long period of unemploymemt-underemployment.
    Funds should be made available to put as many as possible through advanced technical courses. Workflow automation, robotics , engineeering.

  2. 2 Lardprao 3 February 2009 at 8:43 am

    Some 20.0 million Chinese workers suddenly found themselves jobless after the Chinese New Year. according to official Chinese government estimates (probably grossly understating the job losses at China).

    For the Abhisit government, it’s best response to the impending economic crisis will be to undertake policies that would support ‘job creation’ or ‘job retraining’ for the hundreds of thousands (if not millions) of Thais that would be losing their jobs during Y2009. Lots of infrastructure projects requiring ‘manual labor’ (road constructions, building constructions like schools, irrigation works, etc etc) should be underwritten to absorb the Thai jobless.

    What else can Abhisit do – – – I have to scratch my head to wonder.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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