Schroders' chief economist Keith Wade believes Japan will suffer in the short term following the 'worst crisis since WW2', but high savings rate and low reliance on exports will support economic recovery.
Before any analysis of the impact of the earthquake and tsunami which has hit Japan, we offer our sympathy to those directly affected. Current estimates suggest more than 10,000 fatalities, making this worse than the Kobe earthquake in 1995 and in the words of the Prime Minister, the worst crisis since the second world war. Comparisons with Kobe are inevitable, but although Sendai is seen as more remote and of less economic significance, the latest event could end up having more of an economic impact. The tsunami means the destruction has been more intense, requiring greater reconstruc...
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