News / Asia

    Japan Injects $183 Billion to Stabilize Quake Rattled Economy

    Residents cross a bridge covered with debris after the March 11 earthquake and tsunami in the city of Ishinomaki in Miyagi prefecture on March 15, 2011
    Residents cross a bridge covered with debris after the March 11 earthquake and tsunami in the city of Ishinomaki in Miyagi prefecture on March 15, 2011

    Multimedia

    Japan's central bank moved quickly Monday to reassure investors that sufficient money will be available to rebuild the nation's quake-damaged economy, injecting nearly $200 billion to stabilize financial markets.  But the economic damage from Japan's worst earthquake ever recorded may be more severe than first thought. Although the full impact won't be known for some time, analysts say it could take years for the world's third-largest economy to recover.

    Last Friday's massive quake could well be the most expensive natural disaster in Japan's history.  Already saddled with a huge debt and a shrinking economy, Japan's central bank announced it is pumping $183 billion into money markets to keep interest rates low and to make sure banks have adequate funds for emergency activities and rebuilding.

    Central bank governor Masaaki Shirakawa spoke to reporters Sunday night.

    "The Bank of Japan will do its best to ensure stability of the financial markets and supply adequate liquidity.  Rest assured that the central bank and commercial banks will work together to provide enough cash," Shirakawa said.

    But the triple blow to Japan's economy - the massive earthquake, deadly tsunami and now the threat of multiple nuclear meltdowns - could complicate the recovery.  

    Worries about the threat of massive power disruptions to Japanese factories triggered a broad sell-off in the Tokyo stock exchange, sending the Nikkei index to its lowest level in four months.

    Tokyo economist Takuji Okubo says the disruptions are especially problematic in manufacturing-intensive economies such as Japan.

    "I would say the biggest risk is power,” Okubo states. “If Japan is to lose relatively permanently, say for like a year, 10-20 percent of power generation, I think that would be severely negative for the economy."

    It's a huge blow for Japan, which last year lost its standing to China as the world's second-largest economy.  Investment strategist Shinichi Ichikawa says the entire country is affected.

    "So you know the impact is pretty much expanding, not only in the northeast area of Japan, but also the capital city, Tokyo.  And you know that some of the infrastructure in Tokyo should have been pretty much impacted,” Ichikawa explains. “So that is why nobody can know the real economic impact from this earthquake."

    Those who survived the quake know the scale of their tragedy, as many as 10,000 are feared dead. Millions are without power.

    In Supermarkets, shoppers scan empty store shelves looking for basic goods.

    And in Tokyo's normally busy streets, traffic is sparse as motorists’ line up for fuel.

    The magnitude of the disaster is evident to all.  

    Analysts say the nation's growth will likely fall short, as business and industry cope with power shortages and damaged transportation facilities.  But in the long run, economists say the need to rebuild damaged cities and infrastructure will help Japan recover from the country's worst crisis since the World War II.

    You May Like

    Video How Aleppo Rebels Plan to Withstand Assad's Siege

    Rebels in Aleppo are laying plans to withstand a siege by Syrian President Bashar al-Assad’s forces in likelihood the regime cuts a final main supply line running west of city

    Scientists Detect Gravitational Waves in Landmark Discovery

    Researchers likened discovery to difference between looking at piece of music on paper and then hearing it in real life

    Prince Ali: FIFA Politics Affected International Fixtures

    Some countries faced unfavorable treatment for not toeing political line inside soccer world body, Jordanian candidate to head FIFA says

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    NATO to Target Migrant Smugglersi
    X
    Jeff Custer
    February 11, 2016 4:35 PM
    NATO has announced plans to send warships to the Aegean Sea to target migrant smugglers in the alliance's most direct intervention so far since a wave of people began trying to reach European shores.
    Video

    Video NATO to Target Migrant Smugglers

    NATO has announced plans to send warships to the Aegean Sea to target migrant smugglers in the alliance's most direct intervention so far since a wave of people began trying to reach European shores.
    Video

    Video Russia's Catholics, Orthodox Hopeful on Historic Pope-Patriarch Meeting

    Russia's Catholic minority has welcomed an historic first meeting Friday in Cuba between the Pope and the Patriarch of Russia's dominant Orthodox Church. The Orthodox Church split with Rome in 1054 and analysts say politics, both church and state, have been driving the relationship in the centuries since. VOA's Daniel Schearf reports from Moscow.
    Video

    Video How Aleppo Rebels Plan to Withstand Assad's Siege

    Rebels in Aleppo are laying plans to withstand a siege by Syrian President Bashar al-Assad’s forces in the likelihood the regime cuts a final main supply line running west of the city. They vow a siege will not be over quickly. But their plans are not being helped by squabbles breaking out among insurgent commanders.
    Video

    Video Used Books Get a New Life on the Streets of Lagos

    Used booksellers are importing books from abroad and selling them on the streets of Africa's largest city. What‘s popular with readers may surprise you. Chris Stein reports from Lagos.
    Video

    Video After NH Primaries All Eyes on South Carolina

    After Tuesday's primary in New Hampshire, US presidential candidates swiftly turned to the next election coming up in South Carolina. The so-called “first-in-the-South” poll may help further narrow down the field of candidates. Zlatica Hoke reports.
    Video

    Video Co-Ed Selective Service Stirs Controversy

    Young women may soon be required to register with the U.S. Selective Service System, the U.S. government agency charged with implementing a draft in a national emergency. Top Army and Marine Corps commanders told the Senate Armed Services Committee recently that women should register, and a bill has been introduced in Congress requiring eligible women to sign up for the military draft. The issue is stirring some controversy, as VOA’s Bernard Shusman reports from New York.
    Video

    Video Lessons Learned From Ebola Might Help Fight Zika

    Now that the Ebola epidemic has ended in West Africa, Zika has the world's focus. And, as Carol Pearson reports, health experts and governments are applying some of the lessons learned during the Ebola crisis in Africa to fight the Zika virus in Latin America and the Caribbean.
    Video

    Video Smartphone Helps Grow Vegetables

    One day, you may be using your smartphone to grow your vegetables. A Taipei-based company has developed a farm cube — a small, enclosed ecosystem designed to grow plants indoors. The environment inside is automatically adjusted by the cube, but it can also be controlled through an app. VOA's Deborah Block has more on the gardening system.
    Video

    Video Illinois Voters Have Mixed Emotions on Obama’s Return to Springfield

    On the ninth anniversary of the launch of his quest for national office, President Barack Obama returned to Springfield, Illinois, to speak to the Illinois General Assembly, where he once served as state senator. His visit was met with mixed emotions by those with a front-row seat on his journey to the White House. VOA's Kane Farabaugh reports.
    Video

    Video Exhibit Turns da Vinci’s Drawings Into Real Objects

    In addition to being a successful artist, Renaissance genius Leonardo da Vinci designed many practical machines, some of which are still in use today, although in different forms. But a number of his projects were never realized — until today. VOA’s George Putic reports.
    Video

    Video Heated Immigration Debate Limits Britain’s Refugee Response

    Compared to many other European states, Britain has agreed to accept a relatively small number of Syrian refugees. Just over a thousand have arrived so far -- and some are being resettled in remote corners of the country. Henry Ridgwell reports on why Britain’s response has lagged behind its neighbors.
    Video

    Video Russia's Car Sales Shrink Overall, But Luxury and Economy Models See Growth

    Car sales in Russia dropped by more than a third in 2015 because of the country's economic woes. But, at the extreme ends of the car market, luxury vehicles and some economy brands are actually experiencing growth. VOA's Daniel Schearf reports from Moscow.
    Video

    Video Jordanian Theater Group Stages Anti-Terrorism Message

    The lure of the self-styled “Islamic State” has many parents worried about their children who may be susceptible to the organization’s online propaganda. Dozens of Muslim communities in the Middle East are fighting back -- giving young adults alternatives to violence. One group in Jordan is using dramatic expression a send a family message. Mideast Broadcasting Network correspondent Haider Al Abdali shared this report with VOA. It’s narrated by Bronwyn Benito
    Video

    Video Civil Rights Pioneer Remembers Struggle for Voting Rights

    February is Black History Month in the United States. The annual, month-long national observance pays tribute to important people and events that shaped the history of African Americans. VOA's Chris Simkins reports how one man fought against discrimination to help millions of blacks obtain the right to vote
    Video

    Video Helping the Blind 'See' Great Art

    There are 285 million blind and visually impaired people in the world who are unable to enjoy visual art at a museum. One New York photographer is trying to fix this situation by making tangible copies of the world’s masterpieces. VOA correspondent Victoria Kupchinetsky was there as visually impaired people got a feel for great art. Joy Wagner narrates her report.