Tuesday, March 15, 2011

Will Global Economy Take a Hit From Tsunami?

Probably not, at least that's what economists are saying. The tragic earthquake and tsunami in Japan might push the country into a recession, but some experts are predicting a quick recovery. Let’s hope for a quick recovery in every way for Japan.

CNN reports:

    While most of the industrial base of Japan was spared the worst of the disaster, few plants are back up and running yet as the country tries to come to grips with the crisis.

    "The recent events in Japan are first and foremost a human tragedy," said economists from Capital Economics in a note Monday. "Nonetheless, the markets also need to consider the economic impact."

    Here are the 3 key questions in trying to judge the economic chaos caused by the disaster.

    How bad will Japanese businesses be hit?

    Even in areas not directly damaged by the quake and flooding, many factories remain closed due to damage to roads and rails, disruptions of supply chains and limits on the supply of electricity.

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