2011 Japanese Earthquake: Effects on economy

It was on Mar. 11th that the Japanese earthquake occurred in northeastern Japan with a magnitude of 9.0. The earthquake belongs to a subduction zone type, which is generated by the collision of Eurasian plate and Pacific plate. Today I am going to focus on the economic influences of this earthquake, both domestic and worldwide. These disasters happened so rapidly that the Japanese stock market could hardly react: “Tokyo Stock Exchange directly experienced the worst fall to 5% in early trading on Monday local time, or exactly three days after the tsunami” Besides, according to “Power Engineer (2011)”, “Japanese real GDP growth could be cut by 0.2 to 0.5 percentage point this year”. Through the global aspect, the earthquake has hit the world economic more or less. For instance, “US Treasury debt prices were lower on fears that Japanese insurers may need to sell bonds to pay for damages”, along with a great fluctuation of oil price.

Sources: worldnewsco.com | engineerlive.com | telegraph.co.uk

Ben H.

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