Wednesday, March 16, 2011

At $172-B, Japan quake is the most expensive natural disaster the world has known


Just how much did Japan loose when the 9-magnitude earthquake and tsunami waves struck last Friday?
The multinational financial services company, Credit Suisse estimated that Japan has lost at least 14 trillion yen (US$172 billion) following last week's tragedies, in a report by The Telegraph.
Several factories could not operate yesterday and dozens of companies were unable to predict how long the rebuilding will take place and resume their supply lines.
Canon, Honda, Nestle, Nissan, Panasonic, Sony and Toyota were among the big companies that could not operate.
A 6.2 per cent drop in Japan's Nikkei share index followed last Friday's calamities. It crushed the US$144 billion off stocks and shares exchanged there.
Responding to the loss of confidence and to meet the demand for borrowing after the disasters, the Bank of Japan infused a record-breaking US$181 billion into the banking system.
Japan is already battling the way with its economy dropping down south during the fourth quarter of last year plus a national debt that is twice its national income.
"The earthquake could have great implications on the global economic front. If you shut down Japan, there could be a global recession," said Andre Bakhos, director of market analytics at Lek Securities in New York.
In the US, hurricane Katrina in 2005 holds the record for the damage valued at US$123 billion.
Details of this report here.
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