Japan recently was hit by a devastating earthquake in magnitude of 8.9 and then a following Tsunami that left behind destruction that cannot be comprehended when pictures are viewed. Included with the problems that nature left behind for Japan there is also the problem that they are dealing with failing nuclear power plants. The impact of this disaster will be felt globally and that includes the UK markets and therefore UK households.

Japan is a large consumer of energy and is the third largest importer of oil. In context that some of their ability to use nuclear energy has been compromised it means that their demand for imported energy will increase. The initial clean up, demands for food, and other everyday needs will put a higher demand on all of the materials used and consumed. In addition, much of Japan’s agricultural crops and livestock were lost in the tsunami and food prices will be affected by the higher demand as well.

On the other side there will be a need for building supplies and materials and those markets will benefit in a time when building has slowed in other areas of the world. There will be moves up and down in different areas of the market as the impact of the disaster is felt. Currently the most likely impact to be quickly felt will be in areas of higher demand on water, food, clothing, and energy. As demand increases in some areas then supply will be bumped up and there will eventually be better pricing. Those in areas where demand has been low in UK such as building and construction are already looking to secure employment with companies that will be assisting in the rebuild of Japan. This is a natural disaster that is likely to be one of the worst in the last decades and will affect the entire world.