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 Migrants Caught in No-Man's Land In French Port

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching 'Fortress Europe' More

Video Westgate Mall Attack Survivors Confront Painful Memories

On anniversary of terror attack, survivors discuss how they have coped with trauma they experienced that day More

New Hints That Dark Matter Exists

New evidence from International Space Station hints at existence of dark matter and dark energy More

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.
Migrants Caught in No-Man's Land Called Calaisi
X
Lisa Bryant
September 19, 2014 5:04 PM
The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Militant Assault in Syria Displaces Thousands of Kurds

A major assault by Islamic State militants on Kurds in Syria has sent a wave of new refugees to the Turkish border, where they were stopped by Turkish border security. Turkey is already hosting about 700,000 Syrian refugees who fled the civil war between the government and the opposition. But the government in Ankara has a history of strained relations with Turkey's Kurdish minority. Zlatica Hoke reports Turkey is asking for international help.
Video

Video CERN Accelerator Back in Business

The long upgrade of the Large Hadron Collider is over. The scientific instrument responsible for the discovery of the Higgs boson -- the so-called "God particle" -- is being brought up to speed in time for this month's 60th anniversary of the European Organization for Nuclear Research, known by its French acronym CERN. Physicists hope the accelerator will help them uncover more secrets about the origins of the universe. VOA’s George Putic reports.
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video Russian Economy Reeling After New Western Sanctions

A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Belgian Researchers Discover Way to Block Cancer Metastasis

Cancer remains one of the deadliest diseases, despite many new methods to combat it. Modern medicine has treatments to prevent the growth of primary tumor cells. But most cancer deaths are caused by metastasis, the stage when primary tumor cells change and move to other parts of the body. A team of Belgian scientists says it has found a way to prevent that process. Zlatica Hoke has more.
Video

Video Mogadishu's Flood of Foreign Workers Leaves Somalis Out of Work

Unemployment and conflict has forced many young Somalians out of the country in search of a better life. But a newfound stability in the once-lawless nation has created hope — and jobs — which, some say, are too often being filled by foreigners. Abdulaziz Billow reports from Mogadishu.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid