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495958
Sat, 06/23/2018 - 06:12
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Osaka Quake Seen Pushing Down Japan's GDP by 183 B. Yen

Tokyo, June 22 (Jiji Press)--The effects of Monday's major earthquake in northern Osaka Prefecture are forecast to push down Japan's real gross domestic product by 183.5 billion yen, SMBC Nikko Securities Inc. has said. Koya Miyamae, senior economist at the firm, warned that the impact of the 6.1-magnitude quake "may expand" if a shortage of components leads to a supply chain disruption or if the number of tourists visiting the country falls. Many factories and retail stores halted operations after the quake, which measured up to lower 6, the third-highest level on the Japanese seismic intensity scale, in the western prefecture. The nation's real GDP will fall by around 106.6 billion yen on an annual basis, supposing business activity equivalent to a third of that of Osaka Prefecture was suspended for an average of three days, according to the unit of Sumitomo Mitsui Financial Group Inc. <8316>. SMBC Nikko also expects a fall in the number of visitors to Japan as aftershocks of the quake may happen. The brokerage firm estimates the country's GDP will decrease by 76.9 billion yen if the number of visitors to Japan falls 10 pct from the previous month in June and 5 pct in July. "As July is the peak month for tourists visiting Japan, the effects of the earthquake are worrying," Miyamae said. END

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