Recent history has numerous dates which remained in everyone's minds because of their impact on the society. The latest is March, 11th, the day Japan was affected by a tsunami wave and the strongest earthquake in its history, leaving behind hundreds of dead and homeless people. The economic sector of the country was also affected, and is bound to suffer even more. The great damage done to infrastructure, the high prices to rebuild it and the new danger which consists of the nuclear radiations will have affect the world economy.
As we have mentioned about the shortage of electricity and the nuclear radiation wave, we must add that if you have noticed a slight rise in prices at the pump, this is also due to the disasters from Japan. Up until recently, Japan was the principal nuclear power, advocating for it as well. However, the explosion of two reactors at the Fukushima plant and the spreading of nuclear radiations have changed the global point of view, who fears now nuclear plants. That is why the demand for oil increased and with it, its price.
Japan is a country known to have suffered from economic crisis, and one of its causes is that the domestic spending is not high enough. Consequently, anything which demands the government to spend more, will help the economy. Over the next few years, it is a sure fact the Japan will invest in building infrastructure and factories, which will lead, in turn, to economic growth on the medium term.
Oil and its fluctuating price can easily destabilize the global market; all the events throughout history have shown us this. The recent events from Japan have led to a slight increase in the prices of oil because nuclear power was discredited globally. Everyone fears the nuclear radiations produced upon the explosion of two reactors at the Fukushima plant. And the result can be seen at the pump, where we are going to pay more.
Apart direct consequences in the national economy, the natural disasters from Japan had an impact on the world economy. Japan will have to step back from investments made abroad, in order to recuperate money necessary for the rebuilding process. Its economy will suffer because maybe products will have to be imported. As we can see, all these elements are intertwined and have global repercussions. Some economists have highlighted the need of a safer and more stable currency, unaffected by events happening worldwide. This can be gold, chosen by many investors due to its stability.
