Back in March 2011 when the earthquake and tsunami hit Japan I was stunned by the devastation of the natural disaster on Japan. Subsequently the nuclear problem got worst and I had a feeling that the problems Japan will face in the future is going to be bad and one of these problems is the economic impact.
Watching the news, there were idiot so called “economist” on TV that were saying that the earthquake tsunami and nuclear problems won’t affect Japan’s production and economy that much and they were trying to paint a rosy picture that all will be fine.
Well, all is not fine as these stupid economist were wrong, when it came to sourcing all sorts of parts and supplies that originated from Japan that were part of production in all types of products from small electronics to cars were disrupted.
Toyota had car shortages and had to raise prices, Honda said there will be a shortage of Honda Civics, HP and Apple had to delay certain products due to shortage of electronic chips needed for their products and so on and so forth. The result of the nuclear plant problem in Japan is that 30% of the electricity in Japan is offline, which means their production have slowed due to rolling black outs and all this has resulted to Gross domestic product (GDP) that has contracted an annualized 3.7 percent in the three months through March.
Japan Falls Into Recession After Economy Shrinks 3.7%
Japan being now the 3rd largest economy in the world having now going into recession may be the trigger of a global recession as economies all over the world are quite fragile right now.
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