Go Finance Reporting in JAKARTA - Demand is projected to export to Japan will increase along with reconstruction and reconciliation after the earthquake and tsunami last weekend.
"Demand is expected to increase along with the recovery that will last," said Schroders chief economist Keith Wade said as quoted by Financial Times.
He admits, all this time Japan is not a big export destination countries. For example, British exports to Japan was just 2.5 percent of total British exports. For that, he continued this tragedy will not make the market share of exports from some countries down.
Wade said the biggest risk now comes from the streets of Japan's nuclear program. Japan also expected to look for alternative energy, this step is believed would make the price of oil rose.
Furthermore, JPMorgan analyst David Shairp said it's still waiting to record the return of economic reports in Japan. "The investment strategy remains unchanged, still waiting for more information because the condition of the Japanese people during this difficult," he explained.
He explained that the area affected by the tsunami, Miyagi and Fukushima have a combined GDP of 2.16 trillion yen, equivalent to approximately 3.5 percent of national GDP and a combined total population of 4.5 people. For comparison, Kobe and Osaka area contributes about six percent of GDP and a population of about 14.5 million people.
Chief investment officer for Europe, the Middle East and Africa Bill O'Neill said initial estimates of loss from this tragedy reaches USD35 billion. Nevertheless, he argues, the impact of damage from natural disasters is only temporary.
"History tells us that natural disasters like this do not leave permanent damage to the Japanese economy even if short-term effects of large effect. The initial estimate of losses from this event can be reached USD35 billion," he said. (GoFinance)
No comments:
Post a Comment