Earthquakes and tsunamis have a much bigger human impact than an economic one. However, with Japan having the third largest economy in the world, economists are concerned about the effect on the global economy following the 8.9 magnitude earthquake and tsunami.
Japanese markets fell sharply after the tragedy. With the U.S. job market making a slow recovery, people are asking if the earthquake that shook Japan will have an effect on the U.S. economy and fragile job market. Experts such as Jill Schlesinger of CBS Moneywatch.com, are comparing recent events to the Kobe quake of 1995, which cost the Japanese economy $100 billion in damages, but took only a few days for the Japanese market to recover. Others are looking at the decrease of exports from automobiles, Japan’s biggest export to the U.S., which could increase demand for American made cars.
“What is going on in Japan right now is a terrible tragedy and hard to comprehend,” said Andrius Montvila, Principal at A&A Search, “In my opinion it has to have an effect on the global economy, however how much it will affect regional economies is yet to be determined. The scale and scope of the tragedy is still unfolding and our hearts go out to the victims.”
The economy has to be affected by this.