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182602
Tue, 05/17/2011 - 07:25
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http://m.oananews.org//node/182602
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TOKYO REPORT: Experts Split over Global Impact of March 11 Disaster
Tokyo, May 16 (Jiji Press)--Experts are divided on the impact on the global economy of the March 11 earthquake and tsunami disaster in the northeastern Japan region of Tohoku.
Suppliers of electronic and automobile parts form a large part of economic activities in the Tohoku region. Damage to the region from the disaster therefore has seriously affected manufacturers not only in Japan but also overseas.
U.S. automaker Ford Motor Co. had to cut production in North America due to difficulties procuring parts from Japan. General Motors Co. has also been forced to reduce output.
At a recent seminar in Tokyo, Barclays Capital Japan Ltd. said that supply chain disruptions caused by the disaster will severely affect East and Southeast Asia due to the two regions' heavy reliance on imports from Japan.
But the brokerage firm rejected suggestions that the disruptions would cause global economic activity to stall.
JPMorgan also maintains that the impact of the disaster on the world economy will be limited, noting that Japan now accounts for some 8 pct of global gross domestic product, down from nearly 18 pct around 15 years ago.
The U.S. Federal Reserve sees the disaster as an uncertain element for the U.S. economy. In its Beige Book, a summary of comments on regional economic conditions, the Fed pointed to effects of the catastrophe including shortages in many parts of the United States in supplies of parts and products from factories in Japan.
According to minutes of the Federal Open Market Committee's March 15 meeting, monetary policy makers at the U.S. central bank noted that the economic implications of the tragedy in Japan were "not yet clear," indicating concerns that it could act as a drag on the U.S. economy.
The World Bank, for its part, said in a report in March that the impact of the disaster on the East Asian and Pacific economies would be limited.
But Vikram Nehru, the World Bank's chief economist for East Asian and Pacific Region, said it is too early to reach a conclusion on the economic implications of the catastrophe.
Meanwhile, the Asia Development Bank regards the disaster as a risk to the Asian economy.
Against this backdrop, finance ministers and central bank chiefs from the Group of 20 advanced and emerging economies said in a joint statement after their get-together in Washington in April that the devastating events in Japan have "increased economic uncertainty."
While agreeing on support for Japan's postdisaster reconstruction work, they also backed the view that the natural disaster in Japan and the resultant nuclear plant accident would add uncertain elements to the global economy.
To eliminate anxieties spreading worldwide, Japan needs to resolve its nuclear crisis and implement measures to help businesses overcome the current difficulties.
Suppliers of electronic and automobile parts form a large part of economic activities in the Tohoku region. Damage to the region from the disaster therefore has seriously affected manufacturers not only in Japan but also overseas.
U.S. automaker Ford Motor Co. had to cut production in North America due to difficulties procuring parts from Japan. General Motors Co. has also been forced to reduce output.
At a recent seminar in Tokyo, Barclays Capital Japan Ltd. said that supply chain disruptions caused by the disaster will severely affect East and Southeast Asia due to the two regions' heavy reliance on imports from Japan.
But the brokerage firm rejected suggestions that the disruptions would cause global economic activity to stall.
JPMorgan also maintains that the impact of the disaster on the world economy will be limited, noting that Japan now accounts for some 8 pct of global gross domestic product, down from nearly 18 pct around 15 years ago.
The U.S. Federal Reserve sees the disaster as an uncertain element for the U.S. economy. In its Beige Book, a summary of comments on regional economic conditions, the Fed pointed to effects of the catastrophe including shortages in many parts of the United States in supplies of parts and products from factories in Japan.
According to minutes of the Federal Open Market Committee's March 15 meeting, monetary policy makers at the U.S. central bank noted that the economic implications of the tragedy in Japan were "not yet clear," indicating concerns that it could act as a drag on the U.S. economy.
The World Bank, for its part, said in a report in March that the impact of the disaster on the East Asian and Pacific economies would be limited.
But Vikram Nehru, the World Bank's chief economist for East Asian and Pacific Region, said it is too early to reach a conclusion on the economic implications of the catastrophe.
Meanwhile, the Asia Development Bank regards the disaster as a risk to the Asian economy.
Against this backdrop, finance ministers and central bank chiefs from the Group of 20 advanced and emerging economies said in a joint statement after their get-together in Washington in April that the devastating events in Japan have "increased economic uncertainty."
While agreeing on support for Japan's postdisaster reconstruction work, they also backed the view that the natural disaster in Japan and the resultant nuclear plant accident would add uncertain elements to the global economy.
To eliminate anxieties spreading worldwide, Japan needs to resolve its nuclear crisis and implement measures to help businesses overcome the current difficulties.
