The Impact of Japan Earthquake on Japan’s Macroeconomy

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The Impact of Japan Earthquake on Japan’s Macroeconomy The Impact of Japan Earthquake on Japan’s Macroeconomy Since the Bubble Economy was collapsed, Japan gradually recovered. However, the 8.9-magnitude earthquake imposed a big blow on Japan. It not only dramatically affected Japan’s macroeconomy, but also caused neighbor countries’ and even global economic and political changes. On March 11 2011, Japan was rattled by the powerful earthquake and tsunami which claimed close to 20, 000 lives across swathes of the eastern coast (Demetriou, 2011). Fukushima, the nuclear power plants center, had been one of the world’s worst nuclear disasters regions. Serious damage affected many industries, and it greatly change Japan’s state of macroeconomy from several parts. Exports continued to fall because electronics industry, car industry and food industry that are important portion of Japan’s Gross Domestic Product (GDP) were seriously damaged. The country accounts for 16.5 percent of that revenue in the consumer electronics industry (“Japan quake”, 2011). Sony, Toshiba, Kyocera, and Canon, are among the many industry heavyweights in the industry headquartered in Japan. Those companies’ factories were damaged during the earthquake, and it caused a shortage of many components like semiconductor and LCD panel. As a result, it leaded to decrease of exports to most global major car and other relative production companies. The shipments of new vehicles decreased by 67% April 2011. From another perspective, the earthquake impacted the food industry exports to neighbor countries like China due to the worry of nuclear radiation. Another significant impact is the unemployment rate increased. Moody's credit review was announced just hours after Japan's unemployment rate rose for the first time to 4.7% six months after the earthquake (Wearden, 2011). Some major companies in Japan

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