Japan's economic rebound from the deepest contraction among advanced nations after Greece and Portugal may be stunted this year as power shortages threaten its western region.
The Kansai area, which accounts for about a fifth of Japan's economy and escaped the worst of electricity cutbacks after the March 11 earthquake and tsunami, last week lost its final operating nuclear plant. Power supply may be up to 25 percent less than peak summer demand if plants are not restarted, according to Kansai Electric Power Co.
Shortages drive up costs and force manufacturers to shift work schedules to lower-use periods, disrupting supply chains and adding to reasons to go abroad. (Bloomberg)
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