KUALA LUMPUR: The recent Japanese earthquake may cause the world economy back into a double dip recession situation, RAM Ratings Chief Economist Dr Yeah Kim Leng said.
"The quake may shave 2%-5% of the Japanese GDP for this year. From the experience of the Kobe quake, that disaster shaved off 2% of the Japanese economy at that time," Yeah told reporters at the RAM-Investor 2011 roundtable briefing.
"We are concerned of the medium to long term impact of this earthquake. But the efforts by the Bank of Japan to pump in US$183 billion into the financial system may stem any major sell down in the capital markets and reassures investors," he said.
He also said that the CONSTRUCTION [] industry in Japan is set to be a major gainer after this disaster as the government there starts rebuilding the cities affected by the quake and tsunami.
"The quake may shave 2%-5% of the Japanese GDP for this year. From the experience of the Kobe quake, that disaster shaved off 2% of the Japanese economy at that time," Yeah told reporters at the RAM-Investor 2011 roundtable briefing.
"We are concerned of the medium to long term impact of this earthquake. But the efforts by the Bank of Japan to pump in US$183 billion into the financial system may stem any major sell down in the capital markets and reassures investors," he said.
He also said that the CONSTRUCTION [] industry in Japan is set to be a major gainer after this disaster as the government there starts rebuilding the cities affected by the quake and tsunami.
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