"Economic effect will be minimal": Moody's Analytics on Taiwan earthquake

Taipei [Taiwan], April 4 : Steve Cochrane, Chief APAC Economist, Moody's Analytics, has said that the economic effect of the earthquake in Taiwan is expected to be minimal. He noted that the earthquake was centred in Taiwan's Hualien County, which is a centre of tourism and not a centre of business or commerce.
In a statement, Cochrane noted that the economic effect could have been greater if the earthquake was centred in Taipei or the west coast, where much of the semiconductor industry is located. He stated that the economic impact should be moderate in the near term.
"It looks like the economic impact will be minimal. The earthquake was centered in Hualien County on Taiwan's east coast. It is known more as a center of tourism rather than a center of business or commerce. If the quake had been centered in Taipei or on the west coast where much of the semiconductor industry is located, the economic impact would be much greater," Cochrane said in the statement.
"Thus, the economic impact should be moderate in the near term. Much depends upon whether the semiconductor fabs find any damage, even microscopic, in their equipment that would cause production delays. Fabs are reported to have been closed for a half-day or the entire day, but not longer. Thus, barring the discovery of damage to manufacturing equipment, production delays will be minimal," he added.
Steve Cochrane said that there is a possibility that the construction industry will get a boost in the next two-to-three quarters as insurance payments are made and reconstruction begins.
He said, "There is a good possibility that the construction industry will get a boost over the next two-to-three quarters as insurance payments are made and reconstruction begins. This impact would be concentrated in the east coast areas where infrastructure and building damage is the greatest."
An earthquake of magnitude 7.2 on the Richter Scale struck off the coast of Hualien County in eastern Taiwan at 7:58 am (local time) on Wednesday, with its epicentre in the Pacific Ocean, 25.0 kilometres south-southeast of Hualien County Hall, at a depth of 15.5 kilometers, Central Weather Administration (CWA) Seismology Center, Central News Agency (CNA) reported.
The death toll in the earthquake has risen to 10, with 38 others still unaccounted for, Central News Agency (CNA) reported.Rescuers recovered the man's body on Thursday and they continue to search for 38 others.
The 65-year-old man was killed by falling rocks while hiking on the Xiaozhuilu Trail in Hualien County, Central News Agency (CNA) reported citing Central Emergency Operation Center. As of 4:25 pm (local time) on Thursday, 10 people have died and 1067 have been injured in the strongest earthquake to hit Taiwan in nearly 25 years.
Furthermore, 660 people have been stranded due to road damage.The nine other deaths included a technician hit by falling rocks at a section of the Provincial Highway No.8, a driver hit by falling rocks at another section of the same highway and three hikers on the Dekalun Trail in Hualien County, according to Central News Agency report.
A quarry, the Daqingshui Recreation Area on Provincial Highway No 9, and another section on the same highway all reported one death each. Furthermore, a woman died after reentering a partially collapsed building to rescue her pet cat in Hualien City.
As of around 2 pm (local time), a total of 365 aftershocks have jolted Taiwan since a magnitude 7.2 earthquake hit much of the Taiwan on Wednesday, Central Weather Administration (CWA) statistics indicate, according to CNA report.
As of 1:57 pm (local time), aftershocks recorded by the CWA have included 207 of 3-4 magnitude, 140 of 4-5 magnitude, and 16 of 5-6 magnitude. According to CWA data, two powerful aftershocks of magnitudes 6.5 and 6.2, jolted Taiwan at 8:11 a.m. and 10:14 a.m. on Wednesday.