A month of global economic turmoil caused by the corona virus 2

A month of global economic turmoil caused by the corona virus 2

Production and services were `broken` in many places, not just China, during about a month when the pneumonia epidemic was widely publicized.

In 2003, when SARS hit China, the global economy was still relatively normal.

The country’s consumption and manufacturing power reaches across Asia, into North America, Europe and beyond.

A corner of Hongqiao train station in Shanghai on February 18.

To limit the spread, many Chinese workers cannot leave their homes, causing production to stagnate.

Mostafiz Uddin, owner of a jeans manufacturer in the city of Chittagong, southeastern Bangladesh, said he could not fulfill an order for 100,000 women’s jeans because of a shortage of fabric from China.

A month after the pneumonia epidemic forced factories in China to continue closing after the Lunar New Year, a few are gradually reopening.

`The current situation is more serious than we thought,` South Korean President Moon Jae-in said on Tuesday (February 18).

Hyundai Motor, after closing several Chinese factories in early February, suspended one of its main assembly lines in Ulsan (South Korea), due to being unable to receive parts from China.

Japanese exports to China are expected to decline 7% this quarter compared with the last quarter of last year, NLI Research Institute economist Taro Saito said.

After two years of trade tensions with the US, the pneumonia epidemic could put more economic pressure on China.

According to estimates by the McKinsey Global Institute, China now accounts for nearly a third of world GDP growth, up from about 3% in 2000. From 2000 to 2017, the world economy’s dependence on this country increased.

Dependency increased most sharply in Asia.

A month of global economic turmoil caused by the corona virus

Passengers wear masks on a train in Seoul on February 20.

The impact is felt everywhere.

The freeze in tourist arrivals from China has dealt a blow to hotels and retailers that rely on their spending in the United States.

In Vietnam, exports last month fell 17.4% year-on-year, to the second lowest level since the US-China trade war began.

From steel to furniture, Vietnam imports many semi-finished materials from China, then exports finished products.

Australia, with an economy six times larger than Vietnam, is also feeling the effects.

BHP Billiton, the world’s largest mining company, said it will lower expectations for commodity demand growth if the epidemic is not contained by the end of March.

The downturn has also spilled over into supporting industries.

`This is a once-in-a-lifetime event,` said WiseTech Global CEO Richard White.

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