Japanese industry appears to be overcoming the initial disruption caused by the earthquake. Industrial production started to recover in April and is expected to rebound through May and June. The labour market, however, is only just starting to feel the negative effects of the disaster, which will push the unemployment rate significantly higher. The latest warning on Japan’s dire fiscal position from Moody’s is also a timely reminder that the economy as a whole will be held back by the tax increases and cuts in other expenditure required to help pay for the government’s share of reconstruction spending.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services