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.
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.