Investors in Japan are more likely to see short term than long term hits to their returns, InvestmentEurope’s latest poll reveals, with experts tentatively optimistic the country’s economy will be able to bounce back from the combined effect of its recent earthquake, tsunami, and radiation scares.
Pointing to its history, Beazley also said Japan has undergone restructuring before in 1945. “The Japanese understand what it is to rebuild, and to challenge old ways of thinking.”
Echoing Beazley’s point that if anyone can recover, it’s the Japanese, was ING Investment Management’s chief strategist Valentijn van Nieuwenhuijzen.
“Japan is a strong economic power and an organised country. It’s economically resilient, there’s a culture element,” he said.
Supply-side disruptions are expected in the short term, Van Nieuwenhuijzen said, but he argued Japan should be able to catch up afterwards.
A technical recession was likely in the next quarter, thought van Nieuwenhuijzen. Discounting further disaster, there will be some level of activity in the second half of 2011 into 2012, he said.
“Natural disasters are generally a temporary economic phenomenon,” he added.