Households were already spending less, focusing on reducing debt, and this had slowed business investment. By late 2010, however, signs of recovery had begun to emerge, notably among exporting firms benefiting from improved overseas demand and commodity prices. The February earthquake disrupted this recovery. It resulted in significant loss and trauma, compounding the effects of the September 2010 earthquake and subsequent aftershocks.
In addition to the considerable impact on peoples’ lives, there has been substantial damage to assets, as well as disruption to economic activity. The total cost of damage has been estimated at $ billion – approximately 8 percent of annual nominal gross domestic product.