The estimated cost of damages in Japan is huge, equal to more than 4 times that of H. Katrina. See explanation at: Japan Forecasts Earthquake Damage May Swell to $309 Billion, Business Week, March 23.
Japan’s government estimated the damage from this month’s record earthquake and tsunami at as much as 25 trillion yen ($309 billion), an amount almost four times the hit imposed by Hurricane Katrina on the U.S.
The destruction will push down gross domestic product by as much as 2.75 trillion yen for the year starting April 1….The figure, about 0.5 percent of the 530 trillion yen economy, reflects a decline in production from supply disruptions and damage to corporate facilities without taking into account the effects of possible power outages.
The figures are the first gauge of the scale of rebuilding Prime Minister Naoto Kan’s government will face after the quake killed more than 9,000 people. Japan may set up a reconstruction agency to oversee the rebuilding effort and the central bank has injected record cash to stabilize financial markets.
Damages will probably amount to between 16 trillion yen and 25 trillion yen, today’s report said. It covers destruction to infrastructure in seven prefectures affected by the disaster, including damages to nuclear power facilities north of Tokyo. Wider implications on the economy, including how radiation will affect food and water supply, are not included in the estimate.
- Japan Forecasts Earthquake Damage May Swell to $309 Billion (businessweek.com)
- Japan disaster set to be world’s costliest (ctv.ca)