As the world's third-largest economy grapples with disaster, economies around the globe brace for aftershocks
A month after the 9.0 magnitude earthquake and subsequent tsunami that
devastated its northeast coast, Japan faces a humanitarian tragedy, a
drawn-out nuclear crisis and an expensive reconstruction. In the
tightly integrated production networks of East Asia, there will be
knock-on effects. Those countries holding yen-denominated loans – 60%
of Thailand’s debt is in that currency – anticipated more
onerous repayments as the yen appreciated. African partners will not go
unscathed. South Africa’s Standard Bank offered an early
assessment of the effects on Africa. Economists Simon Freemantle
and Jeremy Stevensby predicted that recipients of Japanese aid
– particularly Tanzania and Sudan – and major trade
partners South Africa and Nigeria would be first to feel the
tremors....
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