TUE, FEB 25 2020-theG&BJournal- The economic impact of the coronavirus (COVID-19) on the Chinese economy is shaping up as projected-very bad. Survey figures reported by The Global Times estimates that 60% of firms face operational difficulties due to the outbreak. 6% of them face bankruptcy and 20% more see temporary suspension. Just 5% see no obvious impact from COVID-19. About 50% of China’s economy (12% of Chinese GDP this quarter) has been locked down for the last three weeks.
Major economies of the world are taking a hit from the outbreak too. Italy’s banking index plunged 5% Monday in tandem w/10 y rising Italian bond yields and economist are projecting that the Italian economy is heading for recession. In the US, the coronavirus concerns sank US 30y bond yields to new lifetime low. The Guardian quoted the chief economist of wealth manager AMP in Sidney Australia saying he now expects the global economy to stagnate or possibly shrink a bit in this quarter.
‘’His base case is that the outbreak will be contained by March and that markets will bounce back.’’
Meanwhile, the dailymail quoted World Health Organisation (WHO) virologist as saying that the ‘’outbreak is rapidly becoming the first true pandemic challenge that fits the disease X category, listed to WHO’s priority list of diseases for which we need to prepare in our current globalized society.’’
But Dr Tedros Adhanom Ghebre, WHO director-general expressed optimism the virus can be contained.
He said that the coronavirus has now ‘peaked’ in China and praised the Chinese government for robust measure to contain the outbreak. He said the peak occurred between January 23 and February 2, with the amount of new cases diagnosed declining steadily since then.
In Africa, the Africa Centre for Disease Control (Africa CDC) has continued its work with various African governments, training, improving on its laboratory capacity and providing testing kits.
John Nkengasong, Director, Africa CDC said Sunday the Centre is ‘watching with great concern how transmission of COVID-19 is unfolding in Italy, South Korea, Iran and other places and urged governments in the continent to act collectively and act fast to implement the continent-wide strategy endorsed at Saturday’s African Union emergency ministerial meeting.
China Tuesday recorded 508 coronavirus case and 71 new deaths. In South Korea, 60 new confirmed cases is reported bringing the total to 893 with 9 deaths. The disease has infected over 80,000 people since it emerged at an animal market in Wuhan, China in December 2019. 2,600 people have so far died worldwide.
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