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National News

Disaster likely to be world's costliest

The government said the cost of the earthquake and tsunami that devastated northeast Japan could reach ¥25 trillion ($309 billion), making it the world's most expensive natural disaster on record.

The extensive damage to housing, roads, utilities and businesses across seven prefectures has resulted in direct losses of between ¥16 trillion ($198 billion) and ¥25 trillion, according to a Cabinet Office estimate March 23.

If the government's projection proves correct, it would top the losses from Hurricane Katrina. The 2005 megastorm that ravaged New Orleans and the surrounding region cost $125 billion, according to the Insurance Information Institute.

The overall economic impact could be higher as the estimate does not include the impact of power shortages and other issues. (AP)


Shukan ST: April 01, 2011

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