Coronavirus has Potentially Slowed Down China’s Economy

The coronavirus has smashed into at the worst possible time with millions of people fanned out across the country for the Lunar New Year holiday.

The entire Wuhan has temporarily shut down due to deadly coronavirus which is affecting the overall economy of China. The government of China has canceled high-speed train trips, closed tourist sites, and banned all domestic and international group tours in the country.

“Wuhan is an important hub and manufacturing center in central China. If the lockdown continues after the Lunar New Year holidays, it will affect industrial production, one of the key growth drivers,” said Raymond Yeung, chief China economist at ANZ Research.

As per S&P, Wuhan accounts for about 1.6% of China’s total GDP and there are around 160 Japanese companies’ offices in Wuhan.

A report in the Changeling Daily said, “The city was predicted to have produced around 1.7 million vehicles in 2018.” Furthermore, S&P warned in a report, “Complicated supply chains and just-in-time production could mean that production outages in Wuhan factories have broader spillover effects.”

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