Japan’s Current Account surplus printed slightly higher than expected in February, registering at 1.1 trillion yen. More tellingly, broad trading terms fell by a whopping -55.6% from a year earlier as the global economic downturn weighed on overseas demand to send exports tumbling 50.4% in the twelve months to February. Business confidence fell to a record low in the first quarter, suggesting that the slump will continue to boost unemployment and weigh on spending, deepening the worst recession since the Second World War. Yesterday, the Bank of Japan said the economy will continue to deteriorate “for the time being” and alluded to the possibility of deflation.
