March 24, 2011

Disaster Damage Estimate At 16-25 Trillion Yen

The Cabinet Office estimates direct damage from the March 11 earthquake and tsunami at 16-25 billion yen, significantly more than the roughly 10 trillion yen from the Great Hanshin Earthquake in 1995, according to Nikkei. The Cabinet Office also indicates that Japan's gross domestic product will likely shrink by 0.2% to 0.5% in fiscal 2011. However, the actual impact on the Japanese economy will likely be larger than the Cabinet Office's estimates as they have not factored in the ripple effects from the trouble at the Fukushima Daiichi nuclear power plant as well as rolling blackouts and dampened consumer sentiment.

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