Earthquake made a series of trouble for Japan. After a long period of
recession , a next problem knocked at door of Japan. Biggest effect quake
on economy may be interruption of power supply. Most nuclear plants have to shut down.
Industrial production will also reduce due to shortage of power supply. Budget deficit may increase due to reconstruction activities. Japan has largest public debt among all industrial nations. It is generally believed that Nikkei would open negative of Monday. Most economist believe that effect of such disasters would be in short run. In long run, economy can easily fill its gap if other conditions remains good.
