The huge earthquake that hit off the coast of northeastern Miyagi prefecture earlier this year was a harsh reminder of the more elemental dangers that can threaten economic activity on the crowded and seismically vulnerable Japanese archipelago. Weighing the full implications of the natural disaster will take time. Yet the earthquake at the very least throws a huge question mark over an economic recovery that economists had hoped would gather steam in 2011 after stalling in the last three months of 2010. Although the areas worst hit are far less economically significant than the coastal industry zones, which suffered widespread stoppages after the 1995 Kobe earthquake, the disaster could heighten recent uncertainty among consumers and investors about the prospects for Japan" s continued recovery from its worst postwar recession.Learning from the lessons of the devastating disaster in 1995, the government and insurance companies have been actively encouraging even smaller companies to draw up detailed " business continuity plans" intended to minimize losses and aid quick recoveries. In the longer term, the earthquake is certain to force heavy spending on construction and public works in the affected region. The terrifying footage of tsunami carrying away whole buildings makes it clear that dealing with the damage will require huge effort and heavy investment.