News / Asia

Japan's Economic Fallout Worse than First Thought

A man looks at the closing price of Japan's Nikkei share average (top C) displayed along with major indexes outside a brokerage in Tokyo, April 12, 2011
A man looks at the closing price of Japan's Nikkei share average (top C) displayed along with major indexes outside a brokerage in Tokyo, April 12, 2011
TEXT SIZE - +

Japan's economic minister says the damage to the country's economy from last month's earthquake and tsunami is worse than first thought.

Japan had estimated that the damage may total as much as $295 billion, a figure that did not include the cost of possible contamination of food and water from radiation leaks from the crippled nuclear reactors at Fukushima.

But on Tuesday, economic minister Kaoru Yosano said the blow to the Japanese economy is "larger than our original expectations." He did not make a new estimate but said the damage is "wide-ranging," hitting the northeast sector of the country with its sophisticated manufacturing industries.

Japan's infrastructure has been devastated and its manufacturing supply chains broken. Production at some of the country's largest manufacturers -- Toyota, Honda and Sony -- has been stymied. The International Monetary Fund has lowered its 2011 economic growth forecast for Japan, the world's third biggest economy, from 1.6 percent to 1.4 percent. But one economic research company (Capital Economics) says Japan's economy may shrink by 1.5 percent this year.

A month after the twin natural disasters, Japan has not decided how to refinance the recovery. Its public debt is already the industrialized world's biggest at about 200 percent the size of its economy.

Prime Minister Naoto Kan, whose political fortunes had plummeted even before the earthquake and tsunami, may be forced to sell more debt or raise taxes. Tax increases could further diminish Japanese consumers' confidence and willingness to spend as the scope of the nuclear disaster remains unclear. One survey that tracks confidence among merchants closest to the country's consumers showed it tumbled at the fastest pace ever in March.  

Some information for this report was provided by AFP and Reuters.

You May Like

Russia-Ukraine Crisis Could Trigger Cyber War

Why Europe and the US may be "whistling past the graveyard?" More

Egyptian Court Jails 23 Pro-Morsi Supporters

Meanwhile, Egyptian officials say gunmen have killed two members of the country's security forces More

Pakistani Journalists Protest Shooting of Colleague

Hamid Mir, a host for private television channel Geo, was wounded after being shot three times Saturday, but is expected to survive 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.
Ukraine, Russia, United in Faith, Divided in Politicsi
X
Michael Eckels
April 19, 2014
There is a strong historical religious connection between Russia and Ukraine. But what role is religion playing in the current conflict? In the run-up to Easter, Michael Eckels in Moscow reports for VOA.
Video

Video Ukraine, Russia, United in Faith, Divided in Politics

There is a strong historical religious connection between Russia and Ukraine. But what role is religion playing in the current conflict? In the run-up to Easter, Michael Eckels in Moscow reports for VOA.
Video

Video Face of American Farmer is Changing

The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Donetsk Governor: Ukraine Military Assault 'Delicate But Necessary'

Around a dozen state buildings in eastern Ukraine remain in the hands of pro-Russian protesters who are demanding a referendum on self-rule. The governor of the whole Donetsk region is among those forced out by the protesters. He spoke to VOA's Henry Ridgwell from his temporary new office in Donetsk city.
Video

Video Drones May Soon Send Data From High Seas

Drones are usually associated with unmanned flying vehicles, but autonomous watercraft are also becoming useful tools for jobs ranging from scientific exploration to law enforcement to searching for a missing airliner in the Indian Ocean. VOA’s George Putic reports on sea-faring drones.
Video

Video New Earth-Size Planet Found

Not too big, not too small. Not too hot, not too cold. A newly discovered planet looks just right for life as we know it, according to an international group of astronomers. VOA’s Steve Baragona has more.
Video

Video Copts in Diaspora Worry About Future in Egypt

Around 10 percent of Egypt’s population belong to the Coptic faith, making them the largest Christian minority in the Middle East. But they have become targets of violence since the revolution three years ago. With elections scheduled for May and the struggle between the Egyptian military and Islamists continuing, many Copts abroad are deeply worried about the future of their ancient church. VOA religion correspondent Jerome Socolovsky visited a Coptic church outside Washington DC.
Video

Video Critics Say Venezuelan Protests Test Limits of Military's Support

During the two months of deadly anti-government protests that have rocked the oil-rich nation of Venezuela, President Nicolas Maduro has accused the opposition of trying to initiate a coup. Though a small number of military officers have been arrested for allegedly plotting against the government, VOA’s Brian Padden reports the leadership of the armed forces continues to support the president, at least for now.
Video

Video More Millenials Unplug to Embrace Board Games

A big new trend in the U.S. toy industry has more consumers switching off their high-tech gadgets to play with classic toys, like board games. This is especially true among the so-called millenial generation - those born in the 1980's and 90's. Elizabeth Lee has more from an unusual café in Los Angeles, where the new trend is popular and business is booming.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
AppleAndroid