Japanese automakers and oil refineries and electronic firms have shut down their operations in Japan, pushing the economy on the brink of crisis. Sony has closed down eight of their factories as the production system has been completely hampered by the massive earthquake that rocked Japan on 11th March.
All the communication lines have been disrupted and the blast at the nuclear power plant has also hampered the supply of power to a great extent. Experts say that even if power supply is restored, it will be very difficult to do shipping of goods as there is complete breakdown of infrastructure in many places.
Economists say that the economy may start revolving from April when the process of rebuilding will start taking place. Any nation rebuilding involves a lot of commercial activities and hence movement of cash in the economy. Japan had already been a great example of rebuilding when Americans fell atom bomb on two of their cities.
But Japan has been famous for auto and technology related industries globally. If these industries are hard hit, it will have a tremendous blow on the Japan’s economy. The shares of these companies are expected to be worst hit when the stock market opens on Monday. How will they produce and if they do so, how to reach those goods to the market if there is no power, roads and trucks available.
The Japanese Government is totally at a loss and do not know how to repair this huge loss. About 10,000 people have died, two million people are staying without power and 1.4 million living without any running water. While making the rehabilitation package, the lawmakers must keep in mind about the huge public debt of the nation. What is necessary at this moment is to gain the investors confidence the most.