Post-earthquake economic stimulus

Research Articles

Our Head of Research Anthony Grech offers in-depth analysis into a range of topics, helping add to your knowledge of the financial markets. These free topical reports, accessible to account holders only, track the historic performance of various markets.

Below is a snapshot of Anthony's report on Japan's economic prospects after suffering its devasting earthquake earlier this year. To read the full report, open an account and get set up in minutes.

June 2011

Economic stimulus after the Tōhoku earthquake

On March 11 2011, a powerful earthquake measuring magnitude nine took place off the coast of Japan, triggering a highly destructive tsunami that produced waves of up to 38.9 metres and reached up to six miles inland.

Early estimates placed the confirmed death toll in excess of 15,000, with many more thousands missing or injured. The disaster also caused widespread structural damage, with transport and utility systems in need of extensive repairs. It also caused a series of explosions at the Fukushima nuclear power plant, which led to an extremely serious crisis with the highest severity level of seven on the International Nuclear Event Scale; the same rating given to the Chernobyl nuclear disaster in 1986.

Cost estimates of the damage range from $122 to $309 billion. If the higher estimates are correct, the catastrophe will be the most expensive natural disaster in history.

This report looks at the effects on the Japanese economy, and considers the sectors that may benefit during the recovery period. It will also examine the possible effects on commodity prices and the Japanese yen, and observes that the large-scale recovery efforts could act as a valuable stimulus programme for much of the global economy.

Account holders can access the full version of all our reports in the TradeSense Databank, within the Tools section of our dealing platform.

You can track Anthony's latest research and thoughts on Twitter at @AnthonyGrech_IG.

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