Developments in Japan’s economy after the earthquake The effects of the Great East Japan Earthquake on March 11 changed the situation considerably. According to Cabinet Office estimates, the amount of damage to capital stock will be about 16 to 25 trillion yen, or about 3 to 5 percent of Japan’s annual nominal GDP.
Another remarkable thing about the current cycle of strong global growth is that it has been taking place whilst oil prices have been hovering between USD60 and USD75 per barrel for some time now – levels that would have been almost unthinkable a few years ago and which would have caused market analysts to significantly revise down their growth forecasts.