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April 13, 2011. Economic forecast downgraded after earthquake and tsunami in Japan

SOURCE: Altegrity Risk International

The Japanese government downgraded its assessment for growth in the wake of the March 11th earthquake and tsunami, with industrial production and exports slated to suffer, reports indicated on April 13th. The decision marked the first time in six months that Japan downgraded its assessment. On April 11th, meanwhile, the country cut its forecast for growth. The disaster particularly affected firms operating in northeastern Japan, where factories were destroyed and supply chains disrupted. Electricity shortages due to the Fukushima Daiichi nuclear power plant crisis also disrupted business operations in the northeast and in the Greater Tokyo area. Officials estimate rebuilding costs will rise to 25 trillion yen (US$295 billion). The loss of 13,333 lives (an additional 15,000 remained unaccounted for) and heavy financial cost are likely to further harm a Japanese economy already struggling with the impact of the financial crisis. Another factor harming the Japanese economy is the national mood of self-restraint, with customers cutting back on consumption in sympathy with the victims.

In other news, workers at the Fukushima Daiichi nuclear plant continued to struggle to restore cooling systems and seal off radiation leaks, reports indicated on April 13th. Engineers siphoned off some 250 tons of highly radioactive run-off water to on-site storage facilities.