China’s economy is grinding to a halt as the strip government to stop the spread of the deadly Wuhan crown, fueling fears that efforts to contain the epidemic have global economic consequences. Sixteen cities in China, with a population of over 50 million people are in isolation. For the country to airlines around the world Urge cancellation of flights to China and countries including the United States, residents are no race at all. Chinese companies have started last week for the annual Lunar New Year holiday to nearby, but at a time that usually go to work to prepare, 14 provinces and cities, representing more than two-thirds of China’s economic output, announced, the company that any operation for another week at least can be resumed. China was already under economic pressure first before the authorities cases of unknown pneumonia World Health Organization reported in late December. Overlooking the stresses of trade war and stagnant demand at home, its official GDP growth in 2019, the slowest was prepared since 1990. Now China and the rest of the world for the economic pain that seems the epidemic is likely to come. Sign up for our daily newsletter crown by clicking on this link, and send any tips, leads and [email protected] stories. “The Chinese economy is very important now for the world economy, and if the Chinese economy slows who do not feel,” said Federal Reserve Chairman Jerome Powell earlier this week. “Not so much, though, as the countries that are close to China, or that the most actively trade with China, as some Western European countries.” The most populous country in the world has become an integral part in almost all sectors of the global economy. And ‘the largest producer and imports more oil than any other country worldwide. Chinese travelers are the top spenders in international tourism, so that 150 million trips abroad, worth $277 billion dollars in 2018. And the country of 1.3 billion, the largest market in the world for multiple categories of consumer goods-cars, liquor, luxury products -After the McKinsey Global Institute. the influence of China on the world economy is obvious that react brand name with the outbreak. General Motors and Honda, production vehicles in Wuhan, announced that they are trying to determine when to reopen. Apple limit the travel of employees and on January 28, set an unusually wide range for its expectations for 2020 earnings in the first quarter, “uncertainty” citing the impact of viruses. The CEO of Royal Dutch Shell, called the outbreak a “historic” and said the oil giant for a business environment “difficult and uncertain” prepared. Working together WeWork companies temporarily closed more than 50 branches in China, and Facebook has not stopped but essential travel to the country. IKEA has all its mainland China shutters shops and KFC and Pizza Hut have thousands of stores closed. Starbucks shares closed on the mainland about half of its 4,100 sales points and McDonalds has in five cities in Hubei Province temporarily closed shops, where there is Wuhan. Disney has its theme parks in Shanghai and Hong Kong closed. Much bigger than SARS The outbreak of the virus, which has about 10,000 patients, more than 200 deaths in China and spread to at least 20 countries now have memories caused another epidemic: severe acute respiratory syndrome (SARS), which It launched in China in 2002 and the world has killed nearly 800 people. The economic impact of SARS was felt particularly in China. One study estimated that the SARS crisis cut GDP by 1.1% in mainland China and Hong Kong, where the service sector is a pillar of the economy, by 2.6%. But since 2003 I China has climbed only world-economy is the sixth largest higher than the second largest, worth almost $14.55 in Italian Katherine in 2019, almost as big as the entire European Union. China is also an integral business partner for major economies of the world. The United States, Japan and India to import more goods from China than elsewhere and E.U. and Brazil to sell more to China than any other country. Experts say that probably all the consequences of Wuhan onset crown mean the world economy much more affected than SARS did. “The spill-over will be much larger because China has a much more important role in the world economy,” Warwick McKibbin, an economist at the Australian National University and one of the authors, the study on the economic impact of SARS, says TIME . “They increased income for many Chinese, it is to be a great middle class and therefore the cost of travel and the kind of luxury consumption may Goods-that’ll be affected very differently in one, as it was in 2003. ” Financial markets have whipsawed this week as traders on the price of risk of epidemics fight. Investors have moved their money to safe havens such as the dollar, the Japanese yen and gold. The prices of some raw materials such as oil, are rejected sharply on concerns that the virus and measures which contain, will lead to lower demand from China, according to Rabobank, a Dutch banking and financial services companies. Industries for Hit strain as a virus, the coronavirus spread Wuhan appear less lethal than Sars, infecting nearly 10% of the victims, but the infection levels continue to fluctuate. The fear of contagion could consumer demand and the impact of all tourism trips to dampen trade and services in affected countries, according to Moody’s Investor Services. Fear is spreading rapidly. They were in Hong Kong, 900 miles from Wuhan, some of the few places in which to see large crowds gather this week outside pharmacies of the city, where residents queued stood for hours or shop during the night to get their hands on get new supplies protective masks when. on the shelves More than 700 miles from Wuhan in the northwest of the provincial capital of Gansu Lanzhou, normally bustling restaurants and bars to sit vacant. The streets in cities like Beijing and Shanghai are almost empty. In the southwest of Yunnan Province, almost every business in Lijiang tourism destination it was closed on Thursday, including four of the five pharmacies and a local clinic. “Everyone here is afraid of locking the old city is, no one can leave their homes”, a restaurant owner in Lijiang told TIME asked to remain anonymous because of the sensitivity of the situation. It ‘s already clear that crown Wuhan tourism will be hit hard. The Chinese authorities have announced a temporary ban on outbound group travel. Hong Kong, Taiwan, Singapore and the Philippines have stopped accepting visitors from Hubei province, and Russia and Mongolia have closed their borders with China. Airlines around the world, from United Airlines British Airways to and from China have all cut flights or exposed. Thailand is a popular destination for Chinese tourists expect to see less than two million visitors from China in the next three months. In Japan, some tour companies have already had tens of thousands of cancellations. The chief economist at SMBC Nikko Securities estimated that if the Chinese government for six months-a journey prohibited outputs extreme scenario overseas Chinese group tourists and take $83.1 billion an increase of 0.1 percentage points for the world economy would fall . “The key sectors such as tourism, have become increasingly reliant on business from China,” Mark Humphrey-Jenner, an associate professor of finance at the University of New South Wales, tells TIME. “Show the Crown and its impact that China is an important part of the global economy.” The production in the fields of automotive technology is also likely to take a hit. Several automakers have assembly plants in Wuhan, including General Motors and Honda. Toyota Motor Corp. its production in China is firm until February 9th and CEO of Apple, Tim Cook, the Company announced to take measures to “compensate for any loss of production expected.” McKibbin says many have changed since 2003 and that today many companies are dependent on Chinese production. “It’s really bad production chains.” Eswar Prasad, an economics professor at Cornell University, says that multinational TIME outbreak because they already were to evaluate their new supply, due to rising wages in China and tensions of war trade to their production to reduce the footprints in the country . It also sounds a clear warning. “So the increase was a shock to China’s major reverberations around the world.” “The Chinese economy is now a global giant compared to its modest size, the time of the SARS epidemic,” he says, in Shanghai -With reporting by Charlie Campbell
As Drags Wuhan Crown on Chinese markets, parentheses global economy braces for a slowdown
