• Scale of output, income loss caused by Japan quake may already have lowered future growth trajectory of Japan economy
  • Risk Japan companies may lose global market share due to supply chain disruptions
  • Worse than expected Japan GDP adds urgency to PM plan to introduce second supplementary budget
  • Extent to which govt will share burden of TEMPCO liabilities also risk for Japan fiscal outlook
  • Weaker than expected Japan economic rebound may necessitate action by MOF, BOJ