This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-12802193
The article has changed 7 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
World Bank says Japan needs five years and up to $235bn | |
(about 3 hours later) | |
Japan may need up to five years to rebuild from the disastrous earthquake and tsunami that has caused up to $235bn (£145bn) of damage, the World Bank said in a report. | |
It also estimates about 0.5% was shaved from the country's economic growth this year. | |
However, it expects growth to pick up again in the second half of the year. | |
The 11 March earthquake and tsunami, disrupted production networks in the automotive and electronic industries. | The 11 March earthquake and tsunami, disrupted production networks in the automotive and electronic industries. |
"Damage to housing and infrastructure has been unprecedented," The World Bank said. | |
"Growth should pick up through subsequent quarters as reconstruction efforts, which could last five years, accelerate," it said. | |
The bank estimates the damage to be between $123bn and $235bn. | |
Knock-on effects | Knock-on effects |
The World Bank also predicted that East Asia would be affected in a separate report. | |
"In the immediate future the biggest impact will be in terms of trade and finance," Vikram Nehru, World Bank chief economist for the East Asia and Pacific region. | |
Japan's north-east region, where the earthquake and tsunami hit, is home to ports, steel mills and manufacturers of auto and electronic components. | |
"Disruption to production networks, especially in automotive and electronics industries, could continue to pose problems," the World Bank said. | |
The other worrying factor for the region is that about one-fourth of East Asia's long-term debt is denominated in yen. | |
For China it is only about 8% but for Thailand it is about 60%. | For China it is only about 8% but for Thailand it is about 60%. |
A 1% appreciation in the Japanese yen translates into about a $250m increase in annual debt servicing on the yen-denominated assets held by the nations, the report points out. | |
The region is expected to see less robust growth in 2011 as it fights inflation. | The region is expected to see less robust growth in 2011 as it fights inflation. |