Earthquake in Sichuan

Hi, every one

This week, the worst earthquake in the recent 32 years in China stroke in Sichuan province. This is a catastrophic natural disaster. I just pray more people could be rescued and nobody else would be harmed.

So how would this quake affect China's economy? The links below are 3 article about the impact on China's booming economy.

http://www.shanghaidaily.com/sp/article/2008/200805/20080514/article_359484.htm

http://blogs.wsj.com/economics/2008/05/12/the-earthquake-and-chinas-economy/

http://www.chinadaily.com.cn/opinion/2008-05/15/content_6686511.htm

So the articles above basically state that this quake will not have much impact on the economy other than agricultural ones. Besides that, I believe that this quake may spur certain industries to grow even faster.

During the rescue, many food and medicals are needed. Thus, the demand of food and medicals will increase, resulting in the rise in price of them. As a result, more people will enter the industry to make a profit. Moreover, after the rescue, many cities and towns in Sichuan will be reconstructed. This will cause a huge demand of things related to construction, from raw materials to contruction workers. Thus, more jobs will be probably created and the contruction industry will grow even faster.

However, in the macroeconomic sense, this will cause inflation, loss of workforce and etc. Most importantly, this is a devastating disaster which millions of people suffered. It is a tremendous humanitarian disaster. No matter how the impact on economy it will be, human beings are the most important and any loss of lives will be critical.

Once again, all the best for those people who are still suffering from the quake. And I'm confident that you can beat this earthquake monster.

All the best for those who are suffering, and for those who are living happily like us.

Xiaoyi