Row with China over Fukushima release could shave 0.2% off Japan GDP -Daiwa
Reuters
Published Aug 31, 2023 04:21AM ET
TOKYO (Reuters) - A row with China over Tokyo's decision to release treated radioactive water from the Fukushima nuclear power plant could shave 0.2% off Japan's real gross domestic product (GDP), estimates by Daiwa Institute of Research showed on Thursday.
Japan started releasing treated radioactive water from the wrecked Fukushima nuclear power plant into the Pacific Ocean last Thursday, prompting China, Japan's biggest trade partner, to impose a blanket ban on Japanese seafood products.
Japan's real GDP could shrink by around 1.2 trillion yen ($8.2 billion), or 0.2%, if inbound tourism from China does not recover, adding to the hit from the ban imposed by China and Hong Kong, the estimates showed.
If the row escalates and leads to a 20% drop in goods exports to China, Japan's GDP could shrink by around 6.1 trillion yen, or 1.1%, according to the estimates.
More than 700 Japanese companies exported about $600 million worth of aquatic products to China in 2022, making it the biggest market for Japanese exports, followed by Hong Kong, which announced its own ban on seafood imports from 10 Japanese regions after the Fukushima release.
($1 = 145.8900 yen)
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Written By: Reuters
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