Description

Earthquake and tsunami that followed earthquake have caused severe damages to coastal areas and industrial centers in Japan. Several industries were affected including transportation, energy, agriculture, tourism, and manufacturing. This resulted in power shortages, supply chain disruption, reduction of business activity and tourism, and drop in consumer confidence. Restoration and reconstruction efforts temporarily offset the loss arising out of production disruptions, but resulted in increase in public debt which is one of the highest in the world. Economic growth rate is expected to be low but positive in 2011.