Japan Disasters – estimated cost of damages reaches $306B

Japan 5 yen coin

Image via Wikipedia

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.

One thought on “Japan Disasters – estimated cost of damages reaches $306B

  1. Well my original estimate was $500B and suspect that if damages are over $300 B then the totality of reconstruction and recovery costs will approach $1 Trillion. Hey those are not huge numbers for the Japanese economy. After all most estimates are the US Federal Reserve has put out between $17 Trillion and $27 Trillion just to the FIRE sector stemming from the 2008 financial collapse. After all the Bank of Japan has all those US bonds.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.