HTH -- Haiti Earthquake

May 19, 2011. Japanese economy falls back into recession

SOURCE: Altegrity Risk International

The Japanese economy, the third largest in the world, fell back into recession in the first quarter of 2011 after the May 11th earthquake and tsunami devastated cities, factories, and supply networks. Gross domestic product (GDP) shrank by 0.9% in the first three months of 2011, the Cabinet office said on May 19th. Consumption and exports were particularly affected by the disaster, a problem in a country where consumption and exports account for 60% and 13.5% of the economy, respectively. The country's consumer confidence index fell to 33.1 in April 2011, with a reading below 50 indicating consumer pessimism. Japanese Economics Minister Kaoru Yosano said that "Japan's economy is expected to remain weak for the time being." Compounding the country's problems are power supply issues, high fuel prices, and the need to develop new energy sources to offset lost nuclear capability.