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The cost of the Japan earthquake

The cost of the Japan earthquake

You might think the earthquake in Japan would devalue the currency and undermine the economy, but that’s not necessarily the case.


March 13, 2011 3:56 by

By now, the scale of the Japan earthquake and tsunami has become clear. These huge natural disasters have decimated many parts of the country – in fact reports claim the East coast of the country has moved by more than two metres. The earthquake itself knocked the whole planet 10 inches off its axis.

While the damage and loss of life is still unclear, it may seem the wrong time to ask what the economic impacts of the disaster may be. But given the scale of the recovery effort needed, and the state of the Japanese economy before the earthquake struck, there are very real secondary risks to jobs and livelihoods that need to be considered. Meanwhile, the disasters knock on effects to world markets and so other fragile countries needs to be considered. This video helps start the process.

Source: BBC


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