The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Euromoney Country Risk

Bond Outlook by bridport & cie, March 16 2011

The Japanese people have a remarkable capacity to rebuild their country after disaster. Consider the medium-term impact of the current tragedy; it is not all negative.

Bond Outlook

Despite their terrible suffering, the Japanese people have historically proven themselves able to recover and rebuild after disasters, and indeed to go on to reach renewed heights of economic prosperity. Thus it was after the WW2 and the Kobe earthquake, and thus it will be after the latest tragedy.

 

For years, the West has been asking Japan to consume more of both their own, and imported, goods. That request is about to be met in an unexpected way, but Instead of rice and whisky (two areas protected against imports) there will be a surge in the consumption of construction materials and equipment. Reconstruction will be much less costly than the global financial crisis, but, more importantly, it will be qualitatively different. The financial crisis wiped out paper wealth – real enough to those who lost it, but involving very little depletion of physical assets. The Japanese destruction is of physical assets, and they have to be replaced.

 

The Japanese private sector will have to dispose of foreign assets and repatriate the yen, but these funds will be recycled into purchases of foreign goods and equipment.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree