HONG KONG (MarketWatch) — The Japanese government said Wednesday that the economic cost of the March 11 earthquake and tsunami could be as much as $308 billion, more than double the cost of the 1995 Kobe earthquake.
The government said construction and related costs will total 16 trillion to 25 trillion yen ($198 billion to $308 billion), according to reports citing a statement by the Cabinet Office.
The estimate focused on infrastructure-related damages, as well as that to homes, factories and other buildings, but did not take into account loses related to the ongoing crisis at the damaged nuclear-power plant in the prefecture of Fukushima.
It also said the disaster would knock about a half percentage point off economic growth in the next fiscal year. However, it said some of the disruption to the economy would be offset by the increased spending for reconstruction works.
“We provided the number based on data available so far, and cannot help having certain ranges in our estimate,’’ according to a Kyodo report, which cited comments Wednesday in Tokyo by Kaoru Yosano, Japan’s economic- and fiscal-policy minister.
The estimate covers the seven prefectures in northeastern Japan most affected by the crisis.
In rebuilding after the 1995 Kobe earthquake, the central government’s contribution was about $58 billion over three fiscal years, equivalent to 1% of GDP, according to figures cited by Moody’s. Total reconstruction costs were about ¥9.6 trillion, according to a report by Kyodo, although it wasn’t clear whether the figures were adjusted for inflation or changes in the value of the yen against the U.S. dollar.
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Radioactive Iodine In Tap Water
TOKYO (MarketWatch) -- Local authorities in Tokyo said Wednesday that iodine exceeding permissible levels for infants has been detected in tap water in northern Tokyo, adding to concerns over contamination from the stricken Fukushima Daiichi plant.
On Wednesday afternoon, the Tokyo Metropolitan Government said that a sample of water from Katsushika ward had found radioactive iodine levels of 210 becquerels per kilogram, about double the permissible level for infants, although still considered safe for adults. While not certain, officials said they suspect that the airborne iodine had drifted over rivers that feed Tokyo's water system and had come down in recent rainfall.
Although local officials said the level does not pose an immediate health risk to adults, they said infants in Tokyo's 23 central wards and several surrounding areas should not drink the city's tap water.
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Tokyo Warns About Water, Japan Bids to Calm Radiation Fears
http://www.bloomberg.com/news/2011-03-22/nuclear-plant-s-fuel-rods-damaged-leaking-into-sea-tokyo-electric-says.html
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Atomic Cleanup Cost Goes to Japan's Taxpayers, May Spur Liability Shift