Columbia International Affairs Online: Working Papers

CIAO DATE: 05/2011

The Economic Impact of the Earthquake and Tsunami in Japan: What Will It Mean for Your Business

April 2011

Oxford Economics

Abstract

The Tohoku Pacific earthquake which struck Japan on 11th March was the most serious to hit Japan since the Kobe earthquake of 1995, and was followed by a highly destructive tsunami. As well as having significant short-term economic and financial impacts, these disasters could also leave a longer-term footprint on the Japanese and global economies. In response to the widespread concern about the evolution and effect of the natural disasters in Japan, Oxford Economics is undertaking a syndicated research project to tackle questions relating to the impact on key business areas. The project will seek to analyse how the Japanese economy is likely to develop in the wake of these disasters and to map out a number of scenarios that reflect the key macro-economic and market risks. The resulting analysis will assist decision-makers and risk managers to clearly understand the possible range of risks that might evolve from the events in Japan and to ensure that their organisations are equipped to adapt to the alternative market conditions.