Because of the earthquakes and tsunami that struck Japan, many companies, especially manufacturing companies, are feeling less confident than they were before the disasters hit. The Tankan, a quarterly review by the Bank of Japan released data before the disasters, which said that companies were at a plus 3 ranking and that after they reported a minus 2 ranking. This shows that Japan’s business owners felt optimistic in their next 3-month reports before the disasters, but that an overall pessimistic view has settled in after. Luckily, many economists feel that although Japan will go through a tough spot, eventually their economy will pick up with the re-building of cities and will then grow very steeply after the recovery is in affect.
I thought this article was very interesting because it clearly shows the impact that the earthquakes and tsunami has had on the companies in Japan. I’m glad to know that the entire country hasn’t felt this downturn from our discussions in class, but it’s clear that the companies near the disaster do. I’m also glad to read that economists feel that the companies will be able to recovery in a fairly short amount of time. It’s amazing how economies go through cycles and although this cycle was imposed on Japan, it’s clear that they will recover.
http://www.nytimes.com/2011/04/05/business/global/05yen.html?adxnnl=1&ref=japan&adxnnlx=1302116780-TFqlrQjAngwtIizZJIhjRg
Amie
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