In the wake of Japan’s earthquake and tsunami, TD Economics has been receiving many requests for an economic assessment of the fallout on Japan, the United States, Canada and the global economy. To be honest, it is still very early to tell the full economic ramifications, but we can outline some of the implications. The economics of natural disasters is always difficult to write about, as we are talking about an enormous tragedy, which has killed thousands and has created untold human hardship. This perspective should never be lost. This is why it seems highly insensitive to write that the unemotional, rational economic facts suggest that while the disaster will have a significant impact on the Japan’s economy in the near term, the economy should bounce back in the second half of this year. Moreover, the impact on the global economy will be very limited. [...]