Coronavirus Versus a Broken Economy by Laurence Gates

Author:Laurence Gates [Gates, Laurence]
Language: eng
Format: epub
Publisher: GELBSTEIN
Published: 2020-04-27T16:00:00+00:00

This virus irritates the supply and affects the companies.

Car manufacturers across China make a special decision to close the Lunar New Year, banning global car manufacturers Volkswagen (VLKAF), Toyota (TM), Daimler (DDAIF) (Renault) RNLSY), Honda ( HMC) and Hyundai (HYMTF) from operations to the continuation of the largest automotive trade in the world. According to S&P Global Ratings, the blast will set vehicles in China down to show me about 15% in the first quarter. Toyota said Friday that the plant will close at least Feb. 17.

Manufacturers and luxury goods, to support Chinese customers who offer more money in labor services, you may be interested. The British brand Burberry (BBRYF) closed 24 of the 64 stores and it in the territory and China and on Friday CEO and her warned that the virus is a "negative material idea in the search for luxury". More global airlines can direct flights to and from China.

Even worse is the threat to chains and global globalization. Qualcomm (QCOM), the world’s largest smartphone maker, warned that there was an uncertainty “doing” about wanting and offering the smartphone. A vehicle parts official has forced Hyundai (HYMTF) to close factories in South Korea and force Fiat Chrysler (FCAU) to deliver the aircraft that appears at the new airport to avoid result.

Economists claim that the current level of attention can be managed. If the number of cases we make new for coronary heart disease starts to slow down and Chinese factories reopen soon, the results will make a good hit for Chinese economic in the first quarter and dharma. However, the virus service continues to spread, economic assessment will show quickly.

User risk

Economists have the opportunity to offer the cost and potential of an epidemic to establish its unique characteristics.

But diseases can do more to limit than natural disasters like hurricanes or tsunamis or enable other surprises known as “black swans”. According to a World Bank study, a pandemic could have a preliminary economic loss of 5% of global GDP, or more than $ 3 trillion. Losses from the latest pandemics to seek out the flu, as well as the 2009 H1N1 virus, you may want to secure 0.5% of your GDP in general.

"A pandemic and more like a world war we will do a sudden, deep and widespread activity," the World Bank reported in a 2013 pandemic report.

However, this leak is not caused by the virus. But instead, as consumers, businesses and governments respond to the explosion.

People prefer to stay at home when an epidemic breaks out so they don't get sick, don't let them travel, shop and work. This limits the need for consumer goods and energy. Company and government decisions to close empty shops and factories, short production in a short time.

"The size and volume are constantly growing. So it can be very large and very real. We can't solve it now," said William Reinsch, of the 15-year-old strategic study center and internationally. as president of the International Council for Foreign Trade.

The cut said previous epidemics showed that the Chinese economy could be seriously damaged in the first quarter.

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