Tokyo (AFP) April 12, 2011
The economic impact of the earthquake and tsunami that devastated Japan is worse than previously thought, a Japanese minister was quoted as saying Tuesday.
Economy and fiscal policy minister Kaoru Yosano said the ripples of the disaster that struck the country last month would be felt widely.
"The blow to the economy is bigger than initially thought," Yosano said, the Nikkei business daily reported.
The damage "is wide-ranging. (The tsunami) hit the region that has sophisticated manufacturing as well as the primary industries. I think the blow to the economy is larger than our original expectations," Yosano said.
The March 11 disaster has plunged Japan into its worst crisis since World War II, unleashing a tsunami that wiped out towns along the northeast coast to leave more than 27,000 dead or missing and triggering a nuclear crisis.
With infrastructure ravaged, key supply chains have been broken and power shortages have crippled production for Japan's biggest companies, such as Sony, Toyota and Honda.
Output overseas has also been compromised, with a shortage of Japanese components affecting global markets.
Many see Japan sliding into a temporary recession as a result of the impact of the disasters. The Bank of Japan's Tankan survey last week showed Japanese business confidence in the outlook for the next three months had plunged.
Japan has said the cost of rebuilding could be as much as 25 trillion yen ($295 billion).
The estimate does not include the potential cost of contamination of the food and water supply from the crippled Fukushima Daiichi nuclear plant.
The monster wave knocked out reactor cooling systems at the plant north of Tokyo, causing explosions and the release of radiation.
Tens of thousands of people have been evacuated from a 20-kilometre (12-mile) radius around the plant amid a contamination scare that has led to restrictions on farm produce and overseas bans on the import of Japanese goods.
Japan upgraded its nuclear emergency to a maximum seven on an international scale of atomic crises on Tuesday, putting it on par with the Chernobyl disaster, and making it a "major accident" with "widespread health and environmental effects".
Tokyo stocks slid 1.69 percent Tuesday on concerns for the economy.
Yosano's comments came a day after the International Monetary Fund lowered its 2011 growth forecast for Japan, citing "large uncertainties" hanging over the world's third-biggest economy a month after the huge earthquake.
A mammoth rebuilding task will be required, but Japan faces a huge challenge in financing it without expanding a public debt that is already the industrialised world's biggest at around 200 percent of GDP.
Ratings agency Standard & Poor's in January cut Japan's credit rating for the first time since 2002, and in February Moody's lowered its outlook for Japan's sovereign debt to "negative".
Share This Article With Planet Earth
Bringing Order To A World Of Disasters
A world of storm and tempest
When the Earth Quakes
UN to urge boost to national disaster plans
Geneva April 11, 2011
The United Nations will press political and business leaders to bolster preparations for major disasters during a conference in Geneva next month, a senior UN official said on Monday. The Global Platform on Disaster Risk Reduction conference from May 10 to 13 follows a year marked by huge natural disasters. They have included the earthquake in Haiti, which killed over 220,000 people, in ... read more
Economic impact of Japan disaster 'worse than thought'|
UN to urge boost to national disaster plans
Japan raises nuclear disaster to Chernobyl level
Fukushima 'not comparable' with Chernobyl: French watchdog
Researchers Find Replacement For Rare Material Indium Tin Oxide
Kindle e-reader cheaper with on-screen ads
Winklevoss twins lose Facebook appeal
Apple's iPad to remain top tablet in 2015: Gartner
EU fishing rules are fully operational: commission
Young penguins dying due to lack of food: study
Pamela Anderson pleads to China on seal meat
Hong Kongers back weddings without shark fin soup
Arctic Sea Ice Flights Near Completion
ESA Arctic Ice Campaign Takes Off
Sand Drift Explained
Russia Plans To Spend 195 Million Dollars On Antarctic Research Up To 2013
Brazil meat processor to invest $300 mn in China
Invasive Plant Threat Depends On Spatial
New Genetic Study Helps To Solve Darwin's Mystery About The Ancient Evolution Of Flowering Plants
Japanese queue to buy produce from nuclear crisis area
Body of US tsunami victim found on beach
An Electric Yellowstone Makes For Super Visuals
US offers help after Namibia flooding
Two Koreas hold fresh talks on volcanic threat
Gbagbo on pro-Ouattara TV: 'I want us to lay down arms'
EU split over African migration's 'human tsunami'
Water cut off in Abidjan's 'human tragedy': UN
Both victims of Port Sudan raid Sudanese: Khartoum
Commentary: Coming geopolitical upheaval
French veil ban comes into force
Pacific nations battle obesity epidemic
Elevated Levels Of Sodium Blunt Response To Stress
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|