The rebuilding of a city has a price and the World Banks has come up with an estimate. New Zealand Herald reports:
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Japan may need five years to rebuild from the earthquake and tsunami that has caused up to US$235 billion ($320 billion) of damage, says the World Bank.
The March 11 disaster will likely shave up to 0.5 of a percentage point from the country’s economic growth this year, the bank said in a report. The impact will be concentrated in the first half of the year.
“Damage to housing and infrastructure has been unprecedented,” the World Bank said. “Growth should pick up, though, in subsequent quarters as reconstruction efforts, which could last five years, accelerate.”
The bank cited damage estimates between US$123 billion and US$235 billion, and cost to private insurers of between US$14 billion and US$33 billion. It said the government will spend US$12 billion on reconstruction in the current national budget and “much more” in the next one.