12 Mar '11, 6pm

Japan growth threatened by quake, say analysts

Japan growth threatened by quake, say analysts

TOKYO : Last week Prime Minister Naoto Kan was in a precarious position as his approval ratings tumbled, his foreign minister resigned and funding bills for a $1.1 trillion budget were at an impasse. And then disaster struck Japan. Such issues have been put on the back burner after the government was confronted by the strongest earthquake on record ever to hit Japan and the subsequent tsunamis it unleashed, now set to claim well in excess of 1,300 lives. The impact of the 8.9-magnitude quake may now threaten an economic recovery that was seen to be gathering momentum in the first quarter of this year after losing steam in the fourth quarter of 2010, analysts say. "The timing of the disaster could not have been much worse," Capital Economics noted in a research report. Analysts say it will take weeks to get a firm handle on the true extent of the damage inflicted on the nat...

Full article: http://www.channelnewsasia.com/stories/afp_asiapacific_bu...

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GMT:

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