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Australia to lose $2 billion due to Japanese disasters

Friday, April 1, 2011

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The fallout from earthquake and tsunami catastrophes in Japan will cost Australia about A$2 billion in lost export earnings in the near term due to lower Australian exports to Japan, according to estimates in a Treasury brief released Thursday. After China, Japan is Australia’s largest export market, making up 15 percent of its total exports.

The tragic events in Japan—together with the impact of floods and Cyclone Yasi at home—will clearly mean revenues take a substantial hit in the near term.

—Wayne Swan, Treasurer

"The tragic events in Japan—together with the impact of floods and Cyclone Yasi at home—will clearly mean revenues take a substantial hit in the near term", Treasurer Wayne Swan said in the brief.

Short term exports of "non-rural bulk commodities" are predicted to be lower as Japanese port facilities, coal-fired power stations and steel-making plants were damaged. Businesses whose export products are designated for Japan must find other customers to replace Japanese clients, the brief said. The loss of Japanese markets has been a contributor to a 6 percent drop in the price of iron ore and an 8 percent drop in the price of coal. Japan imports account for 27 percent of Australia's iron ore and coal exports.

Also on Thursday, Japan's manufacturing production index experienced its sharpest fall in the decade since data has been collected, indicating a steep fall in output for most businesses in Japan in March. Recently, Japanese industry seemed to be rebounding from the global financial crisis.

In Asia, concern is mounting that the electricity shortages and other disruptions to Japan's manufacturing sector will affect manufacturing in various areas of Asia, since the manufacturing of many goods are dependent on the integrated network of supply chains.


"Australia announces levy bill to offset cost of Queensland floods" — Wikinews, Thursday, January 27, 2011

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  This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.
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