The prevalence of pneumonia is constantly increasing in China with new infections of the coronavirus. To prevent the virus from spreading abroad, officials implemented measures to close the city. In addition to the slowdown in the outbreak of the new crown, the global industry chain is also facing massive setbacks.
According to CNBC5, Diana Choyleva, chief economist at Enodo Economics, said that in the uncertain global economy, the pneumonia epidemic of new coronavirus infection has increased China ’s Coping burden.
Joyliwa said that not only did growth slow down significantly in the second half of last year, it would also be a critical period for China to address the huge debt problem. According to research by Enido Economics, credit losses from the new Coronavirus can be as much as 20 per cent of China’s gross domestic product. “The impact on the economy will be even greater when the SARS virus has spread,” he said.
Major Cites shut down due to an outbreak of coronavirus infection
As the new Coronavirus spreads from Wuhan, major cities such as Wenzhou and Hangzhou have joined the shutdown. Since China is an important part of the global supply chain, these drastic measures to curb traffic and limit logistics, with the impact of the shutdown and labour shortages during the Spring Festival holidays, have led to a global crown epidemic. The industry chain has suffered. Massive obstacles
Freya Beamish, the chief economist of the Asian Macroeconomics Pantheon, said that as a result of the extended downtime, China ’s growth rate in the first quarter may fall by less than 2% annually or year-on-year. Freya said this was very surprising and would see the severe impact at least in the first quarter of this year.
WisdomTree Research Associate Director Aneeka Gupta predicts that the outbreak of the new crown could last for months. “The outbreak of Xinguan is a new and unknown thing in the market. We believe there will be more ‘pain’ than profit for at least the next two to three months, and investors are likely to invest in a more secure safe haven. Assets, “he says.
On the other hand, Eduardo Lecubarri, global head of small and medium-cap stock strategy at JPMorgan Chase, said that although it is difficult to predict how long the virus will put pressure on the market, he does not think that This threat will persist. “We’ve seen how it started and we don’t know how it will end. But logic shows that this is a temporary short-term obstacle to growth.”
VOA claims that Wuhan is China’s auto production centre, with several car manufacturers, and headquarters of Dongfeng Motor, China’s largest state-owned carmaker. General Motors, Ford, Honda, and Nissan have all said they will delay construction for at least a week, according to official instructions.
New Coronavirus epidemic has also affected the global technology industry’s supply chain
The new Coronavirus epidemic has also affected the global technology industry’s supply chain, according to reports. Global electronics, telecommunications, and semiconductor companies rely on Chinese factories, and they are home to many high-tech component providers, at the epidemic of epidemics.
A report from research group HIS Markit pointed out that the closure of Wuhan has affected the production of TV displays, causing prices to rise. There are five factories in Wuhan that produce liquid crystal displays (LCDs) and OLEDs (organic light-emitting diodes), both of which support flat-screen TVs and computer monitors. China accounts for more than half of the global production of these display panels.
Not only this, but Apple’s product production has also been affected by the epidemic. Last week, Apple CEO Tim Cook told analysts that Apple’s suppliers in China were forced to postpone factory operations after the Spring Festival holiday. Cook said Apple is looking for ways to minimize supply constraints.
The report said that supply chain disruptions would also affect the global retail industry. In order to meet the summer supply deadline, Chinese factories need to start increasing production by March 15, some experts said. If Chinese factories are inactive by May 1, retailers will likely have a critical season and fall supplies to school.