Japanese reconstruction may boost GDP growth

Source from - marketcall.net


Experts suggest the massive Japanese earthquake may push up the country’s gross 
domestic product (GDP) as a result of the reconstruction efforts but Japanese 
equities and insurers are likely to suffer. 

A report from Citi expects reconstruction demand will materialise in the second 
half (H2) of 2011, eventually pushing up GDP.

"We estimate the net impact on GDP growth in 2011 at +0.2% to 0.3% points," 
said Citi.

This supposition was supported by rating's agency Moody's.

"Reconstruction spending will likely prove to be a very effective and 
justifiable fiscal stimulus. Such expenditure will likely offset the economic 
impact from immediate losses in production and demand," it said.


Source: http://www.marketcall.net/



      


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