Japanese Economy After the Great East Japan Earthquake in 2011

After a sharp contraction in the economic activity in 2008-2009 (the biggest economic slump in Japan after World War II), the Japanese economy started to recover in 2010. The Great East Japan Earthquake and tsunami of March 2011 brought Japan´s recovery to a halt. It ruined vast parts of Japan´s north-eastern coastal areas and damaged key infrastructure. It was one of the most destructive earthquakes in all of the Japanese history. This article focuses on the Japanese economy and its development in 2010-2012. It pays special attention to the economic impact of the earthquake and tsunami of March 2011 (damage to private capital and public infrastructure, electricity shortages, supply chain disruptions, decline in production and exports, etc.). The aim of this study is to recapitulate and analyse the development of the Japanese economy in 2010-2012 and to analyse both the immediate and long-term impacts of the Great East Japan Earthquake on the Japanese economy. It focuses on the government countermeasures and new economic strategies with respect to the latest natural disaster.