Support My Efforts By Visiting The Advertisers


This is a personal blog. The opinions expressed here represent my own, not those of my employer and is not intended to malign any religion, ethnic group, club, organization, company, or individual.

Impact Of Japan Earthquake

>> Tuesday, March 15, 2011

Firstly, my condolences goes out to all those affected by the disaster.

According to many economist, Japan is at serious risk of falling into a recession but will recover quickly, sparing the global economy a significant shock.

How bad will Japanese businesses be hit?
Many factories remain closed due to damage to roads and rails, disruptions of supply chains and limits on the supply of electricity. Overall GDP is expected to decline in the second quarter.

Who will pay?
Both insurers and the government start paying to rebuild roads, ports, factories and homes damaged or destroyed. Even though the Japanese government is already under massive debt of more than twice GDP, this may result in excessive borrowing.

What will the impact be on the global economy?
Some high-value goods, such as computer chips or specialized auto parts are only made in Japan, raising the possibility of some production disruptions.

The excess borrowing that the Japanese government is likely to take on to pay for reconstruction could drive up bond yields.

Well, it may be too early to determine the effects, but the nikkei has already dropped 6% on Monday and as of Tuesday morning, a further 5% drop.




The owner of this blog does not share personal information with third-parties nor does the owner store information is collected about your visit for use other than to analyze content performance through the use of cookies, which you can turn off at anytime by modifying your Internet browser’s settings. The owner is not responsible for the republishing of the content found on this blog on other Web sites or media without permission.

Blog Comments

The owner of this blog reserves the right to edit or delete any comments submitted to this blog without notice due to;

1. Comments deemed to be spam or questionable spam
2. Comments including profanity
3. Comments containing language or concepts that could be deemed offensive
4. Comments that attack a person individually

Terms and Conditions

All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

This policy is subject to change at anytime.

About This Blog

To promote the education of individuals for the need to have a healthy lifestyle and wealth management through proper financial planning, particularly in investments.

Top Blogs


Top Sites

  © Blogger templates Sunset by 2008

Back to TOP