An Economic Aftershock Hits Japan

by NewsDesk - iWireNew
The massive earthquake that struck Japan Friday could tip the scales in the country's efforts to reduce its debt and turn its economy around, analysts said.
Analysts at Capital Economics wrote, "The timing of the disaster could not have been much worse," The Washington Post reported Saturday.
The earthquake hit a relatively unimportant area from an economic point of view, the Miyagi Prefecture, which accounts for 1.7 percent of the country's overall economy. Nevertheless, it will cost tens of billions of dollars to repair the damage.
"The greater the social and economic damage, the larger the threat to the government's ability and willingness to ward off a fiscal crisis," Capital Economics analysts wrote.
While the 8.9 magnitude quake was massive, it did not hit major industrial areas, like the 1995 earthquake that struck Kobe. The damage from Friday's tremor, however, does include damage to a nuclear power plant and millions are now without power, the Post reported.
The earthquake struck 30 minutes before the close of stock trading in Tokyo, but sent an already negative market down lower. The Nikkei 225 index lost 1.7 percent on the day and analysts expect markets will adjust lower next week.

Source:OFFICIALWIRE