The economic aftermath of the Japan catastrophe is hitting domestic as well as international markets. The incidents of March 11 have severely affected the country and its people causing economic figures to shrink which also affected overseas distributors.

The impact of the tsunami and earthquake and the following nuclear crisis caused power cuts and stopped production on many sites in the country. Japans industrial production slumped to 15.3% which marks the biggest drop in the country’s recorded history. A survey of 1,000 companies concluded that the Japanese industries lost a total of US$ 7.36 billion in the catastrophe.

The country’s gross domestic product is expected to shrink by an annualized 3.2%. Thanks to strong figures from April to December 2010, most companies’ profits were still gaining on the last year. The Japanese government announced an economic growth rate of 0.6%, down from 1,6% for the upcoming fiscal year.

According to a corporate reporting including statements of twelve American companies, the lethargy of the Japanese domestic market have affecting overseas companies as well. Companies selling to Japan large-scale like Coca-Cola and Gap were affected immediately. The slow consumption also trickled down to clothing and handbag retailers, jewelers, car retailers and technology companies in the United States.

Next year is supposed to present growing figures again because rebuilding in the north of the country.