The recent earthquake in Japan could have a significantly negative effect on its foreign retail projects, something that would particularly affect China, the US, India and the wider Asia-Pacific region.

According to fDiMarkets, China has consistently been the most popular destination for Japanese retail investments, followed by the US and India.

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With the costs of Japan’s earthquake expected to come in at 3% of its GDP, this could greatly reduce its number of foreign retail projects. Many countries in the Asia-Pacific region, especially New Zealand and Vietnam, would be most vulnerable to any such reduction, as Japanese investments make up a large portion of their local markets.

Figures showed that since 2003, Japan has made 135 retail investments into China and 49 into the US.

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