The Japanese government has estimated economic damage from the earthquake which struck Noto Peninsula at between ¥1.1 trillion and ¥2.6 trillion (US$7.5bn – US$17.7bn). The 7.6 magnitude quake struck on New Year’s Day, causing widespread destruction to homes and infrastructure in the Ishikawa, Toyama, and Niigata prefectures.
The General Insurance Association of Japan (GIAJ) on Monday reported that over 50,000 insurance claims have been accepted, reflecting the significant impact of the quake on individuals and businesses in the affected areas.
Japan’s Cabinet Office also released damage estimates for houses, nonresidential buildings, and public infrastructure, with Ishikawa Prefecture suffering the most, with damages potentially reaching ¥1.3tn, which aligns with the over 20,000 claims that have been accepted from the prefecture.
On Thursday, the GIAJ announced that aerial and satellite images had been employed to fast-track claims, with cross-industry ‘joint survey’ teams using imagery to identify ‘total’ and ‘partial’ loss areas. In a total loss area, all insured properties will be considered a complete loss, negating the need for individual site inspections.
In its monthly economic report, released Thursday, the government highlighted the significant economic repercussions of the recent earthquake, emphasizing the need for vigilant monitoring of its long-term effects. “Full attention should be given to the economic impact,” stated the report, acknowledging the potential for enduring consequences on the nation’s financial health.
Despite Ishikawa’s modest share of 0.8% in Japan’s overall gross domestic product (GDP), the report noted that critical local industries, including production machinery manufacturers and power semiconductor producers, have been disrupted, with many facilities yet to restart operations following the calamity.
The Japanese government has announced a support package for quake victims, which includes relief payments and subsidies for travel expenses to boost tourism. The package, funded by the reserve budget for fiscal year 2023, totals ¥155.3bn.
