Wednesday, 4th May 2011
In Business In Japan,
Japanese firms to recover quickly, says ADB
The Asian Development Bank (ADB) has given Japanese business a vote of confidence, saying that normal operations should be resumed in around three months.
Factories in the northeast of the country, including many owned by carmaker Toyota, continue to be affected by the March 11th earthquake and consequent tsunami, AFP reports.
However, the ADB said that problems with industrial supply could be corrected "relatively quickly".
Haruhiko Kuroda, president of the regional bank, said: "Already a number of factories have been reconstructed and restored. I do think that the supply chain disruption could be overcome relatively quickly."
Despite admitting that the short-term impact on Japan is "not insignificant", he said that the reconstruction efforts would help to boost growth during the second half of the year.
Mr Kuroda's comments come after the Bank of Japan last week cut its growth forecast for this fiscal year from 1.6 per cent to 0.6 per cent.
Written by Mark Smith