Economists estimate that the direct economic hit will total between 10 to 16 trillion yen ($125 billion to $200 billion), with prolonged power shortages possibly preventing the “V shaped” economic recovery that followed the 1995 Kobe earthquake.
“The economic cost of the disaster will be large,” economists at JPMorgan said. “There has been substantial loss to economic resources, and economic activity will be impeded by infrastructure damages (like power outages) in the weeks or months ahead.”
On Monday and Tuesday, Japanese stocks experienced their worst two-day drop since the 1987 crash, losing $626 billion in value, before rebounding 5.7 percent on Wednesday.
- Developments in Japan’s disasters, nuclear crisis (foxnews.com)
- Japan rebuild may take 5 years, $235B (cbc.ca)
- You: Quake, tsunami could cost Japan $235 billion: WBank (france24.com)