Continue from the article: Impact on Economy after Japanese Earthquake, Tsunami (written on March, 11 2011)

Tokyo Tower, by Sebastien Batardy

March 11, 2011. Now many Japanese consider this day as the black day. The worst day after the nuclear attack on Hiroshima and Nagasaki by the Americans in 1945.

March 11 was the date when Japan was recovering from last year's economic trouble, everything was going on peacefully with several deals and treaties with western world, India and Russia, Japan was moving ahead, but an 8.9 magnitude earthquake which was later corrected to 9 magnitude on richter scale jolted Japan damaging life and property. Rest was swept away by the triggered tsunami.

But the disaster didn't stop here. Just after few hours and days of everything which happened reports started coming up of a minor explosion in a nuclear reactor in Fuskushima. Earlier the government tried to cover up the matter, telling the public everything is normal and there is no need of panic. But when the government opened itself and released the news, it was late. This nuclear incidence has now been declared as the highest level emergency on par with Chernobyl Disaster.

"It is now understood that the the impact on the economy of Japan due to the earthquake is much more than how it was expected earlier", said Kaoru Yosano, Minister for Economic and Fiscal Policy.

According to a recording of a meeting held last month, central bank officials refrained from any discussion on new economic stimulus measures.

Business confidence in the trade sector registered the largest decline in March, since the government began recording this data in 2000.

According to the Analysts of Capital Economics, in the year 2011, Japan's economy will shrink by 1.5%.

In the month of March, the government of Japan estimated that the impact of the earthquake and tsunami on their economy is as huge as 25,000 billion yen, that is Japan has lost 297.8 billion US dollars in this disaster last month itself. 

In a response, many politicians have been prompted to seek the formation of an economic stimulus package of 20,000 billion yen (or, 238.2 billion US dollars) to bring Japan out of this trouble.

Japanese companies have started liquidating foreign holdings, that is to sell foreign asset and buy more yens, in order to generate capital to pay for the reconstruction work.

Auto manufacturer, Toyota and major electronics manufacturer, Sony, and other foreign countries having their plants in Japan have halted their production. That is a loss to the company as well as the government of Japan.

Toyota and Sony have halted their work. The workers from the plants have been evacuated and international officers and employees have been sent back to their home country for their safety.

29%  of Japan's electricity comes from these nuclear power plant which have been shut down for safety. Now when Japan is short of 1/4th of its electricity, the progress work has been affected a lot. 

Japan, the third largest economy in the world will come out of this economic disaster soon. This is the hope and prayer of every individual in this world.

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