World IP suffered in March as Japan collapsed


In March 2011, the world IP was impacted by the strongest decline ever recorded in Japan.

World IP suffered in March as Japan collapsed
In March 2011, the world IP decreased by 0.7% month-over-month (MoM), after a stagnation in February and +1.2% in January. After the earthquake and the tsunami, the Japanese industrial activity has collapsed (-13.7% MoM) and this dragged the overall index down. It is the largest decline recorded since at least 30 years for a developed country. A decline was also recorded in Central and Eastern Europe (-0.5%) and also in Africa (-1.3%). On the other side, the industrial production expanded by +0.7% in the US, +0.2% in the euro area and +0.8% in Emerging Asia.

On an annual basis, the world IP is up by 6.0%. Only the Emerging Asia and Latin America have surpassed its pre-crisis peak for production.

Economic Impacts
Despite March’s decline, the positive trend is intact for the overall production. The collapse in Japan will be temporary and a sharp rebound is expected in the next months. This strong industrial cycle is stronger in Asia (excl. Japan) but Europe and the US are getting their slice.

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