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Japan Cuts Economic Assessment
« في: يوم 13-04-2011 , س 23:36:37 pm »
Japan Cuts Economic Assessment



Japan’s biggest non-life insurers may have to pay higher reinsurance rates when they are reviewed next month after the nation’s strongest earthquake.
The Japanese government cut its assessment of the economy for the first time in six months after the March 11 earthquake killed more than 12,000 and led to the worst nuclear crisis since Chernobyl, Bloomberg reported.
“Although the Japanese economy was picking up, it has shown weakness” since the temblor, the Cabinet Office said in a report in Tokyo.
A power shortage that resulted from a crippled nuclear facility, delays in resolving supply chain disruptions and rising oil prices threaten to depress growth further, it said.
Economic and Fiscal Policy Minister Kaoru Yosano said on Tuesday the disaster’s effect on the economy has been larger than previously thought, an indication reconstruction plans may exceed the government’s projections.
The Bank of Japan last week established an emergency lending facility to help affected businesses and warned that the event will exert “strong downward pressure” on the world’s third-largest economy.
Prime Minister Naoto Kan aims to compile a stimulus package this month that Cabinet members say could be as large as 4 trillion yen ($47 billion).
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