Concern about the new coronavirus comes to the impact of the economy characterised the trading on the Shanghaibörsen when it opened on Monday for the first time since the 23rd of January. The courses have plummeted by more than 9 per cent in the opening trade. This despite the fact that China’s central bank, the bank at the weekend announced that it will pump out large amounts of money into the economy and lowers interest rates in order to keep the liquidity of the banks.
the new coronavirus began, the chinese economy has come out of hibernation. Nyårsledigheten has been extended for one week, for travel, set up, and the company had to stop their activities.
– To estimate how hard the virus will hit on the economy would not be possible. From the official chinese press, it is estimated that the impact will be short-term.
However, much of this will depend on when they manage to get to grips with the spread of infection, which is very unclear at the moment. So far, the number of confirmed cases of those infected to rise at a rapid rate. In the morning, had over 17,000 confirmed to have the virus and 362 dead, including one from outside China.
in China, the virus will be in a situation in which the rate of growth of the economy was already on the road to keep up the momentum. The rate of GDP growth of 6.1 per cent in the last year, the lowest level in 30 years. Among other things, weighing on trade wars with the united states. After that, a provisional agreement is in place is a major part of the duties of which the united states has been put on chinese goods remains.
by Now, the virus has resulted in large areas of China had been isolated from the rest of the world. More than 50 million people are stuck in the Hubei province, where the virus broke out. In other parts of China to keep out people of a high level of at home, which will affect consumer spending. Several countries advise also to travel to China, and the major airlines have halted trips to the country.
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the major companies: Foxconn, Toyota, Starbucks, Mcdonald’s, Ikea and Volkswagen, for the moment, suspended their operations in China. Apple has closed all of its stores, and more companies have begun to evacuate staff who are not chinese.
China’s tourism and travel industry from the very means of the virus as a significant setback. New year’s is the biggest resehelgen in the world, put many people out of their travels. It is also the time when many of the films will go up at the box office. However, the virus has forced the premiers to set up, and the cinemas as well as theatres and other places of entertainment are closed.
Goldman Sachs is predicting, in a prediction that the pace of growth in China will slow to 5.5 percent this year, compared with 6.1 per cent in 2019. The second is making more pessimistic assumptions.
An economic slowdown in the world’s second-largest economy, China will impact the global economy. China accounts for one-fifth of the world’s GDP, considerably more than the time when the sars epidemic broke out. The chinese jättemarknaden, with more than a billion consumers-are key to many of the international companies. At the same time, China is a major importer of oil. If the activity of the chinese economy, the drops will also reduce the demand for oil. In the past week, the price of oil has fallen as a result of the virus.
Read more: It’s here, we know about the new coronavirus.
