As a result, the global economy experienced the acute symptoms of what could be described as an instantaneous evaporation of demand. Reflecting the characteristics of this crisis, what was affected the most were capital goods and durable consumer goods. Since Japan’s strength lies in exactly these kinds of goods, that is, automobiles, electrical machinery, general machinery, etc., Japan’s economy was severely affected.
And for the same reason, despite the fact that they were not the epicenter of the financial crisis, not only Japan but also many other East Asian economies, including South Korea, Taiwan, and Singapore, were among those that experienced the most severe downturn in economic activity immediately after the crisis.