Japanese exports have nearly halved from a year ago, official figures showed on Wednesday, stoking fears that the world’s second largest economy is heading even deeper into recession.

The country’s dismal February trade performance was the latest in a string of bleak economic figures. It fuelled expectations that Japan was on course to suffer a steep fall in output in the first three months of 2009 that could match or even exceed the 3.2 per cent quarter-on-quarter decline recorded in the final three months of last year.