The Japanese government said damage to infrastructure from the earthquake that rocked central Japan on New Year's Day may reach a maximum of ¥2.6 trillion ($17.6 billion), Kyodo News reported.
The quake flattened houses, cut off power and water, affecting supply chains and local tourism. I Photo: Japan Maritime Self-Defense Force Maizuru District Unit (海上自衛隊舞鶴地方隊) X
The magnitude-7.6 earthquake that struck the Noto Peninsula in central Japan has added a layer of uncertainty over the economy, amid concerns about the negative effects of aggressive monetary tightening in advanced economies and a Chinese slowdown.
"Full attention should be given to the economic impact of the 2024 Noto Peninsula earthquake," the government said, noting inflation, the conflict in the Middle East, and volatility in the financial markets should also be monitored.
The quake flattened houses, cut off power and water, affecting supply chains and local tourism.
According to the Cabinet Office, damage to houses, roads, ports, and other infrastructure is estimated to be somewhere between ¥1.1 trillion and ¥2.6 trillion in the three disaster-hit prefectures of Ishikawa, Toyama, and Niigata.
The breakdown includes an estimated ¥400 billion to ¥900 billion for residential properties, ¥200 billion to ¥400 billion for non-residential buildings such as factories and offices, and ¥500 billion to ¥1.3 trillion for public infrastructure such as roads, water pipes, and port facilities.