The 2011 Great East Japan Earthquake – the worst disaster in Japan's post-war history – killed around 20 000 people and caused enormous physical damage. Japan's initially strong recovery from the earthquake and tsunami stalled in mid-2012, leaving output 2½ per cent below the peak recorded in 2008 prior to the global economic and financial crisis (). Japan has experienced three recessions in five years. The key challenges are to achieve sustained growth and fiscal sustainability following these two shocks.