On March 11, 2011, Japan suffered the fifth largest earthquake in history. Although Japan is extremely well prepared for earthquakes, nothing could have prepared the country for something this big. And that’s not even counting the tsunami “giant wave” that was created by the quake. Japan suffered a 9.0 earthquake that resulted in a nuclear crisis, thousands have been confirmed dead and half a million residents have been forced to relocate. It has been reported that the earthquake and tsunami will cost the Japanese economy $250 billion.
The earthquake has caused major damage. The air is unsafe to breath because of the nuclear catastrophe, the food and water supply has been corrupted and the nuclear facilities have caused rolling blackouts. Utility providers are warning of blackouts across the country because they are not able to meet electricity demands. Stock markets in Japan have plunged. This is the toughest and the most difficult crisis for Japan since World War II.
Japan has received plenty of support from around the world. It has been reported that Japan has received $87 million in aid, yet this financial assistance is significantly less than the $514 million financial aid after Hurricane Katrina of 2005 and the $275 million for the Haitian earthquake of 2010.
Unfortunately, the economic aftershocks of Japan will affect nations all around the world. The Japanese manufacturing sector is unable to produce car parts, forcing the country’s global car giants to halt production at their factories. Factories being shut down at Toyota, Nissan and Honda will dramatically affect Japans economy. Toyota and Nissan are halting production at over 20 factories. The electronics industry was also badly hit. Japan produces 40% of the world’s technology parts. Electronic corporations will experience a drastic decline in production operations since Japan plays a key role in the electronic global supply chain. Sony has suspended production at 8 plants and GM was forced to shut down a plant. The production of Apple products such as the Iphone and Ipad will likely decrease significantly. Toshiba has shut down plants as well. These shortages in production will likely drive up product prices temporarily. The travel industry, which is still suffering from the effects of the economic recession, is likely to take another hit. Impact on oil prices is still unknown; however it is likely that the need for new power substitutes may increase oil prices. Global food prices, which are already on the rise, may see a new increase as Japan’s food and water supplies are testing positive for radiation.
Economic activity in Japan, the world’s 3rd largest economy has been seriously disrupted. We will all suffer from this devastation as there will certainly be ripple effects on the rest of the world. Japan will surely recover from this disaster, but in the meantime will need all the help and prayers they can get.
Please continue to pray for the people of Japan!
S. Martinez (April 2011)
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