Japan Faces Up to 1 Trillion Yen GDP Loss Due to Noto Peninsula Earthquake

The Japanese government estimated the loss in gross domestic product (GDP) for January to March due to the strong earthquake in the Noto Peninsula, Ishikawa Prefecture, which occurred last January, to be between 90 billion and 115 billion yen (approximately 800 billion to 1 trillion won).

According to Kyodo News on the 23rd, the Japanese government derived this figure by reflecting the situation where electricity and water supply were cut off and factories and stores ceased operations due to the earthquake.

A strong earthquake in the Noto Peninsula, Ishikawa Prefecture, Japan caused cracks on the road.
[Image source=Yonhap News]

The loss estimated by the Japanese government accounts for about 2% of the total production from January to March in the earthquake-affected areas of Ishikawa, Toyama, and Niigata Prefectures.

On the same day, the Japanese government decided at the Cabinet meeting to additionally spend 138.9 billion yen (approximately 1.2 trillion won) from the contingency budget of the 2024 fiscal year (April 2024 to March 2025) to support the Noto Peninsula disaster area.

Prime Minister Fumio Kishida instructed relevant ministers to establish a "Reconstruction Fund" to support the earthquake-affected local governments by June.

This content was produced with the assistance of AI translation services.