Japan’s Economy ,Earthquake Tsunami and Nuclear Crisis
The impact of devastated earth quake and tsunami has not only made a disaster for the people but also pushed the Japanese economy in the harder times. The third largest economy of the world is now all set to assess the damages caused due to the catastrophe. The impact of earth quake and tsunami on the Japan’s economic situation is inevitable as hundreds of industries, factories and manufacturing units have stopped their production across Japan. Economists therefore warn against rolling blackouts and emerging financial disasters in the way. Government of Japan however doing a lot to check the crisis and in an attempt to do so, authorities instructed the Bank of Japan to infuse billions of Yen into the economy as an emergency or quack budget.
Two automobile legends like Toyota and Nissan has already decided to halt the production of cars at all of their factories and manufacturing units. In the fray, Toyota evacuated workers from its two working plants in the most affected regions of the Japan as the units altogether make up to 420,000 small export quality cars each year. Even today, two of three important manufacturing units at Toyota have stopped working and major damages are reported to the factories of the companies like Fuji Heavy Industries, GlaxoSmithKline and Nestlé.
Industry experts of the Japan warn against more rolling financial blackouts across the country in times to come. If economy experts are to be believed the priorities of the Bank of Japan to ensure full availability of the cash in the affected areas so that customers could withdraw money to accomplish their day to day needs. In the row, central bank has also been instructed to flood money markets with more cash to stop the yen against the rising inflation. To face the financial trauma, Japanese companies, industries and firms have started assess their assets, selling dollars and other foreign currencies to face up the cost of rebuilding their domestic economy against the financial crunch. Experts however assert that it could make exports more expensive in the Japan’s economy.
Another threat that’s haunting the economy experts of the world is the rising public debt of Japan which is already the highest among advanced economies. Stock exchanges of Japan have dived deep approx. 1.7% and expected to lose more in coming days. Debacle of the economy is even more evident in the oil prices which further fell by 3% and continued to fall further in parallel weeks.
Despite being one of the world’s largest importers of oil, demand for the Japan’s oil is likely to drop considerably due to destruction done by the devastating tsunami and earthquake. The new decade has witnessed a shattering start Japan, technology center of the worlds. Entire world is looking forward to cooperation and new nuclear treaties to escape any such incident in near future. It’s not about mass deaths, property damages but a true depiction of nature’s furore against human interference with nature’s law.
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