World Bank: Quake damage may hit $235B

WASHINGTON, March 21 (UPI) -- Japan's damage from its May 11 earthquake-tsunami calamity may go hit $235 billion, the World Bank said Monday, adding reconstruction may take five years.

The World Bank report also said real gross domestic product growth "will be negatively affected through mid-2011" but should "pick up in subsequent quarters as reconstruction efforts, which could last five years, accelerate."

The report, quoting government and other sources, estimated the damage from $122 billion to $235 billion, or 2.5 to 4 percent of the GDP, and the cost to private insurers of as much as $33 billion.

"While it is too early to estimate accurately, the cost of the damage is likely to be greater than the damage caused by the 6.9 magnitude Kobe earthquake in 1995," the report said.

"Private insurers are likely to bear a relatively small portion of the cost, leaving a substantial part to be borne by households and the government."