The impact of The Great East Japan Earthquake to Japan Economy

On March 11, 2011, Japan witnessed a devastating earthquake, which is examined in this article along with the likely short-term economic consequences. The center of Great East Japan Earthquake was close to Tohoku, Japan's northeastern shore. It triggered a massive tsunami and the subsequent Fukushima nuclear accident, which resulted in extensive damage and several casualties. The earthquake had a major impact on economic development not just in the areas directly affected by the earthquake, but also in other parts of Japan. This tragedy claimed the lives of more than 23,000 people (as of May 23) and inflicted damage estimated around $200 billion in Japan. This article focuses on evaluating effects of this natural disaster on the economy of Japan. There are two aspects included by this analysis-the real private residential investment and consumption expenditures. The ARIMA model analysis of the data prior to the earthquake and the comparison of the actual data with the estimated data from following months show that the earthquake had a detrimental effect on Japan's economy. According to the ARIMA model analysis, The Great East Japan Earthquake have different influence on the Japan economic. For consumption expenditure, the earthquake exerts a negative impact on it, while the real private residential investment is increased after this earthquake.