the Number of infections by the new coronavirus continues to rise, and no one knows when the virus has reached its peak. More than 50 million chinese people are isolated, nyårsledigheten has been extended one week, companies have canceled the production of their restaurants are closed, and the sports and cultural set up.
the growing concern over the impact on the chinese economy and the global economy. The nervousness was apparent on Monday, when the Shanghaibörsen-opened after having been closed since the 23rd of January. The courses have plummeted by 9 per cent in the öppningshandeln, the chinese currency weakened and commodity prices fell.
the fact That large parts of China will be closed for a week around the chinese new year holiday, is usually. However, coronavirus, has plunged the economy is in the standby mode for an indefinite future. No one knows when the virus will be contained and the economy can be up and running as normal again. This creates a great deal of uncertainty.
It's enough to be going on to Beijing's streets for one to recognize that the virus is already dragging down the economy. Almost all the restaurants are open, the shopping malls are empty, the gym and the clubs are holding closed for an indefinite future.
but the economic impact is not just in China.
China has undergone a transformation since the sars virus broke out in 2002. The time was the impact on the global economy for a short while.
it is different. China is no longer a state whose economy is driven by the low-paid, low producing t-shirts, and other manufactured products for export. The economy has evolved and grown considerably since then, and is now integrated in the global economy. China is one-fifth of the world's GDP, when the sars epidemic broke out, there was a 4 per cent.
in the production of smart phones, computers, and materials and supplies delivered for use in the production of the other parts of the world. A larger, more affluent middle class, have made China an attractive market for international companies. Gucci, Rolls-Royce, Hennes & Mauritz and Ikea. Here are all of the the most well-known multinational brands. The chinese market of over one billion people, has become more and more important.
the Chinese people are traveling more, and it has become a reasonable source of income for the world's tourism industry. They are spending more money than the other tourists in the cut and stay on. Now, many airlines set the travel to and from the field. The impact of tourism in many parts of the world.
the Upshot is that if China's economy falters suffer for the rest of the world. This at a time when the trade wars between the united states and China have already slowed the growth rate in China, which last year was at its lowest level in 30 years.
How much of the new coronavirus comes to hitting, a lot depends on how long it takes before the virus can be stopped, and how the chinese government is acting to counter the economic slowdown. It has already pumped in billions and are getting ready to inject more to offset any decline.
for more information: Marianne Edwards: the Importance of political stability, may have delayed the measures against the virus.