Mohamed El-Erian on the impact of the Japan earthquake

Pimco CEO Mohamed El-Erian believes Japan will see a pick up in economic activity going forward ."the impact for Japan is firstly a destruction of wealth there has been a lot of physical damage a tremendous amount of human suffering so once and for all destruction of wealth secondly once and for all decline in economic activity so the heading hat the economists call the wealth effect and an income effect "..." going forward you gonna see different things , first you will see a massive reconstruction program to give you a sense Kobe 1995 was 2 per cent of GDP reconstruction people estimate this will be two to three times as large " " so you gonna see a pick up in economic activity driven by reconstruction , second the private sector is not going to go back to where it was before and that's because of the nuclear element , electricity generation is going to be less going forwards may be as much as 25% less......."