The Japanese Economy Minister, Kaoru Yosano, said that between 10 and 15 billion yen (86 - 129 billion euros) will be needed to rebuild the country after the earthquake and tsunami that hit it on 11 last March.
To cover these costs, the state could issue new bonds, but always conscientiously: "We cannot borrow imprudently without thinking about the possibility of repaying the money in the future," the minister told a local television station. He also specified that a tax increase will be inevitable. In short, we must try to remain cautious so as not to disconcert investors.
The Japanese economy, which contracted much more than expected in the first quarter, fell again into recession (defined as GDP contracting for two consecutive quarters) following the earthquake, tsunami and the catastrophe at the Fukushima.
The gross domestic product decreased by 0,9% in the first quarter of 2011, compared to the previous period with a decrease on an annual basis equal to 3,7%.
On the Tokyo Stock Exchange today, the Nikkei closed down 1,52%.
