Financial crisis in Japan is not a given

While it is still too early for a full assessment, Japan’s past experience suggests an accelerated reconstruction effort, and the short term impact on the economies of developing East Asia is likely to be limited.
By Patrick Burnson, Executive Editor
March 23, 2011 - SCMR Editorial

Japan’s real GDP growth will slow, but the slowdown will likely be temporary, as a result of the earthquake and tsunami and growth should start picking up after mid-2011 as reconstruction efforts get underway, says the World Bank in its latest released report. While it is still too early for a full assessment, Japan’s past experience suggests an accelerated reconstruction effort, and the short term impact on the economies of developing East Asia is likely to be limited.

The report, titled “Securing the Present, Shaping the Future,” was finalized in the weeks prior to the disaster in Japan. In new research prepared since the quake and tsunami struck Japan, the World Bank provides preliminary analysis on the implications for the region with a focus on trade and finance. However, the analysis points to uncertainties and ongoing challenges posed by the unfolding situation involving nuclear reactors in Japan.

“Clearly given Japan’s importance in East Asia, the tragic events unfolding will be felt in the region. But it’s far too early to give an accurate assessment of the likely damages,” said Vikram Nehru, World Bank Chief Economist for the East Asia and Pacific region. “At this stage, we expect the economic impact of this disaster on the East Asian region to be fairly short-lived. In the immediate future the biggest impact will be in terms of trade and finance. We expect growth in Japan will pick up as reconstruction efforts accelerate.”

For related stories click here.



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Both the mega-port of Los Angeles, and the Port of Oakland (California's third largest ocean cargo gateway, issued positive reports this month.

The American Association of Port Authorities (AAPA) applauded introduction of The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015), which is bipartisan legislation to modernize and renew U.S. Trade Promotion Authority (TPA).

Container lines must accelerate their internal-transformation efforts and extract more value from their alliances in order to restore profitability, according to a new report by The Boston Consulting Group (BCG).

A.T. Kearney released the 2015 Global Retail E-Commerce Index, a study designed to help retailers devise successful global online retail strategies and identify market investment opportunities while understanding the tradeoffs and barriers to success.

The MIT Center for Transportation & Logistics (CTL) invites readers to participate in a short survey regarding Supply Chain Visibility in their organizations.

Article Topics

Blogs · Supply Chain · Procurement · Finance · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.