Bank of Japan Gov. Masaaki Shirakawa said Thursday the economy will expand next quarter as it recovers from the March 11 disaster.
"Most private economists believe that Japan's GDP growth rate will turn positive again in the third quarter of 2011 onward," Shirakawa said in a speech at the Council on Foreign Relations in New York. "The most important thing for a central bank during a crisis is to ensure the stability of settlement systems and financial markets."
The magnitude-9 earthquake and tsunami on March 11 left more than 28,000 dead or missing, according to the National Police Agency. The estimated damage from the tsunami and earthquake will amount to 3 to 5 percent of nominal gross domestic product, or ¥16 trillion to ¥25 trillion, Shirakawa said, affirming government estimates made last month.