Japan is still reeling from the effects of the massive earthquake and tsunami that devastated the north-east of the country on March 11th. The offshore earthquake, measuring 9.0 in magnitude, was one of the largest ever recorded. The tsunami flattened towns and villages, resulting in massive destruction of property and the displacement of hundreds of thousands of people. With thousands still unaccounted for, the death toll is likely to rise rapidly. The disaster has also damaged a nuclear-power plant, resulting in several explosions and prompting the evacuation of the surrounding population. So long as there is no nuclear catastrophe, the impact on national GDP growth is likely to be modest compared with the scale of human trauma. But what will be the main economic implications of the disaster? How will this event hamper business operations?
Read the EIU's economic outlook for Japan following the recent catastrophe. Includes three possible scenarios.