The aftermath of the 2011 Tōhoku earthquake and tsunami included both a humanitarian crisis and massive economic impacts. The tsunami created over 300,000 refugees in the Tōhoku region of Japan, and resulted in shortages of food, water, shelter, medicine and fuel for survivors. 15,900 deaths have been confirmed. 2,500 people remain missing. In response to the crisis, the Japanese government mobilized the Self-Defence Forces, while many countries sent search and rescue teams to help search for survivors. Aid organizations both in Japan and worldwide also responded, with the Japanese Red Cross reporting $1 billion in donations. The economic impact included both immediate problems, with industrial production suspended in many factories, and the longer-term issue of the cost of rebuilding which has been estimated at ¥10 trillion (US$122 billion).
As of 2021, rebuilding and reconstruction efforts has cost Japan $300 billion in US currency.
A further serious impact of the tsunami was the critical damage done to the Fukushima Daiichi Nuclear Power Plant, resulting in severe releases of radioactivity and the prospect of a long-term health and environmental hazard in need of an expensive clean-up.
Humanitarian crisis
The 2011 Tōhoku earthquake and tsunami displaced a large number of people. At its peak in June 2012, the number of evacuees was 346,987 Some earthquake survivors died in shelters or in the process of evacuation. Many shelters struggled to feed evacuees and were not sufficiently equipped medically.
Fuel shortages hampered relief actions. In the first week after the earthquake, supplies of food, water, and medicine were held up due to a fuel shortage and weather conditions. Food was limited for some unevacuated people, and as of late March, some were given one meal a day.
There was a need for temporary housing, as the Japanese government tried to remove evacuees from large shelters, where there were reports of poor sanitary conditions. As of late March, 8,800 temporary units were planned in Iwate, 10,000 in Miyagi, and 19,000 in Fukushima.
At the end of July 2011, the number of evacuees in Japan stood at 87,063. Of those, 12,905 were residing in public shelters and 19,918 were staying in inns or hotels. 46,081 units of temporary housing, about 88 percent of the number planned, had been erected. Evacuees had moved into 73 percent of the temporary housing available.
Nuclear accidents
Following the earthquake, tsunami, and failure of cooling systems at Fukushima I Nuclear Power Plant and issues concerning other nuclear facilities in Japan on 11 March 2011, a nuclear emergency was declared. This was the first time a nuclear emergency had been declared in Japan, and 140,000 residents within 20 km (12 mi) of the plant were evacuated. Explosions and a fire have resulted in dangerous levels of radiation, sparking a stock market collapse and panic-buying in supermarkets. The UK, France and some other countries advised their nationals to consider leaving Tokyo, in response to fears of spreading nuclear contamination. The accidents have drawn attention to ongoing concerns over Japanese nuclear seismic design standards and caused other governments to re-evaluate their nuclear programs. As of April 2011, water is still being poured into the damaged reactors to cool melting fuel rods. John Price, a former member of the Safety Policy Unit at the UK's National Nuclear Corporation, has said that it "might be 100 years before melting fuel rods can be safely removed from Japan's Fukushima nuclear plant".
Problems in stabilizing the Fukushima I plant have hardened attitudes to nuclear power. In June 2011, more than 80 percent of Japanese said they were anti-nuclear and distrusted government information on radiation. It was speculated that this could spell the end of nuclear power in Japan, as "citizen opposition grows and local authorities refuse permission to restart reactors that have undergone safety checks". Local authorities were skeptical that sufficient safety measures had been taken, and reticent to give their permission – now required by law – to bring suspended nuclear reactors back online.
Economic impact
Japan
Following the earthquake some analysts were predicting that the total recovery costs could reach ¥10 trillion ($122 billion); however, by 12 April 2011 the Japanese government estimated that the cost of just the direct material damage could exceed ¥25 trillion ($300 billion). Japan's real gross domestic product contracted 3.7% for the quarter of January to March 2011.
The northern Tōhoku region, which was most affected, accounts for about 8% of the country's gross domestic product, with factories that manufacture products such as cars and beer, as well as energy infrastructure. It includes northern Miyagi prefecture, where Sendai is, about 300 km (190 mi) northeast of Tokyo. The Miyagi area includes manufacturing and industrial zones with chemical and electronics plants. It is estimated that Miyagi accounts for 1.7% of Japan's gross domestic product.
An estimated 23,600 hectares of farmland, mostly rice paddies, were damaged by the tsunami. Salt left in the soil by the seawater could adversely affect rice crops for years. The affected area accounts for as much as 3%–4% of Japan's rice production. An estimated 4.37 million chickens in northeast Japan died following the earthquake as a result of disruptions in the supply of feed from overseas suppliers.
An estimated 90% of the 29,000 fishing boats in Miyagi, Iwate, and Fukushima prefectures were rendered unusable by the tsunami. Miyagi Prefecture's fishing industry was almost completely destroyed. Twelve thousand of 13,000 registered fishing boats in the prefecture were destroyed or damaged. At least 440 fishermen were killed or missing. The damage to the prefecture's fishing industry was estimated at ¥400 billion (US$5 billion). The total damage to Japan's fishing industry, in seven affected prefectures, was estimated at ¥1.26 trillion (US$11.29 billion).
The earthquake and tsunami have had significant immediate impacts on businesses such as Toyota, Nissan and Honda, which completely suspended auto production until 14 March 2011. Nippon Steel Corporation also suspended production, Toyo Tire & Rubber Company and Sumitomo Rubber Industries shuttered their tire and rubber production lines, while GS Yuasa closed its automotive battery production. This was expected to hinder supply availability for automakers.
Tokyo Electric Power Company, Toshiba, East Japan Railway Company and Shin-Etsu Chemical were suggested as the most vulnerable companies as a result of the earthquake. Sony also suspended production at all its six plants in the area, while Fuji Heavy Industries discontinued production at most of its factories in the Gunma and the Tochigi Prefectures. Other factories suspending operations include Kirin Holdings, GlaxoSmithKline, Nestlé and Toyota amid power cuts. The factory shutdowns, power cuts and the consequent presumed impact on consumer confidence could hurt the national GDP for several months, although economist Michael Boskin predicted "only minimal impact on the Japanese economy overall". Following threats of further nuclear leaks, Blackstone Group LP, Continental AG and BMW were said to be moving their staff outside Japan. Toyota planned to recommence hybrid vehicle production, including the Prius, Lexus HS, and Lexus CT, on 28 March 2011. Honda said that their two Japanese factories will remain closed until 3 April. On 24 March, Nissan said it may move some engine production to the United States due to earthquake damage in Japan. Also on 24 March, IHS Inc. automobile analyst Paul Newton predicted U.S. plants could experience parts shortages by mid-April and that automobile production worldwide could drop by 30%. Toyota expected some shutdowns in North America, but these would be temporary since many needed parts were shipped before the earthquake.
Chief economist for Japan at Credit Suisse, Hiromichi Shirakawa, said in a note to clients that the estimated economic loss may be around $171 billion–$183 billion just to the region hit by the quake and tsunami. On 14 March, the Bank of Japan, in an attempt to maintain market stability, injected 15 trillion yen into the money markets to assure financial stability amid a plunge in stocks and surge in credit risk. After it set up an emergency task force to ensure liquidity in the aftermath of the disaster, governor Masaaki Shirakawa and the bank's board also enlarged a programme to buy government bonds to exchange-traded funds to the tune of 10 trillion yen. The BOJ chief told reporters cash injections will continue as needed. However, following the further nuclear leaks, its actions were read by the market as insufficient despite 8 trillion yen being pumped into the market. On 15 March, the Topix index fell again marking a two-day plunge not seen since 1987 as Japan's default risk surged after Prime Minister Naoto Kan warned of further leaks from the damaged nuclear power plant. Commodities were also significantly lower. Residents of Tokyo were reported to have gone on panic shopping sprees as daily necessities were sought after and gasoline was stocked up with the increasing risk of radioactivity releases.
Chief Cabinet Secretary Yukio Edano said that Japan's government will convene on 13 March to gauge the economic effects of the catastrophe. He told NHK Television that about 200 billion yen that was remaining from the budget for the concurrent fiscal year that would end on 31 March would be used to fund the immediate recovery efforts. Additional measures could also hurt Japan's public debt (which is already the highest in the world). This additional spending could hurt demand for government bonds.
Silicon wafer production has been suspended at factories owned by Shin-Etsu Chemical and MEMC Electronic Materials, which together account for 25% of the global silicon wafer production. The suspension is expected to drastically impact semiconductor production, which is contingent on wafer availability.
Some economic analysts consider that, ultimately, the catastrophe will improve Japan's economy, with increased job availability during restoration efforts. An analyst at JPMorgan Chase, citing the 1989 Loma Prieta earthquake in the San Francisco Bay Area and the Southern California 1994 Northridge earthquake, noted that natural disasters "do eventually boost output". An analyst at Société Générale anticipated that Japan's economy would decline in March 2011 but then revive powerfully in subsequent months. After the Kobe earthquake, industrial output dropped 2.6%, but increased by 2.2% the next month and 1% the following month. Japan's economy then accelerated substantially through the next two years, at more than its former rate. Others believed that the catastrophe would harm the economy. Some analysts have argued that those who predict that the reconstruction effort could help Japan's economy have fallen prey to the broken window fallacy. On 24 March, an executive of Bank of Japan's Osaka branch said he expected "a big decline in production, [leading to] an adjustment in the economy initially with exports and inventories falling and imports rising... Demand created by reconstruction projects will emerge after that." The government said that reconstruction in the ongoing year could raise GDP by 5 trillion yen to 7.75 trillion yen.
By the end of July 2011, 47 percent of the 22.63 million tons of debris in Iwate, Miyagi, and Fukushima Prefectures had been removed. By 11 July 2011, 73.7% of farming businesses affected by the quake and tsunami in eight prefectures had resumed operations while 35.5% of fishing entities had returned to business, according to the Japanese agricultural ministry. The ministry excluded Fukushima from the results because of the ongoing nuclear crisis.
The reconstruction of damaged areas in Tōhoku beginning in 2011 produced a boom in construction jobs and business in the area. As a result, cities like Sendai benefited from an increase in residents and wages for construction-related jobs rose.
By March 2012, 644 companies in Japan had been forced into bankruptcy by the disaster. The companies included 157 service companies, 150 manufacturers, and 113 wholesalers. The companies left behind liabilities of ¥925.4 billion (US$8 billion) and had employed 11,412 people.
Global financial impact
In the immediate aftermath of the earthquake, Japan's Nikkei stock market index saw its futures slide 5% in after-market trading. The Bank of Japan released a statement proclaiming that it would do its utmost to ensure financial market stability. On Tuesday, 15 March, news of rising radiation levels caused the Nikkei to drop over 1,000 points or 10.6% (16% for the week).