Japan is suffering its worst year for exports since the 2009 global contraction as Europe's debt crisis, China's economic slowdown and the Senkakus dispute with Beijing hurt manufacturers and deepen the risk of a recession.
Shipments totaled ¥53.5 trillion for January through October, down 2.3 percent from the same period last year, according to data released Wednesday by the Finance Ministry. The trade deficit for 2012 so far stands at a record ¥5.3 trillion.
The hollowing out of Japan's export champions, highlighted by a cut in Panasonic Corp.'s debt rating to one step above junk status by Moody's Investors Service on Tuesday, underscores the urgency of rekindling domestic demand. Ahead of the Dec. 16 general election, political parties are facing off on how hard to press the Bank of Japan to boost stimulus.