If the corona virus crisis in Wuhan, China continues like this, it will affect the Chinese economy quite badly. According to S&P, the growth of the country's economy will remain below expectations due to the crisis caused by the virus.
The number of people who died in Cohan virus (2019-nCoV) in Wuhan, China has increased to 26. The Chinese media announced that almost half of those who lost their lives were over 80 years old. However, the corona virus threatens not only human life but also the Chinese economy.
According to the US-based international credit rating agency S & P, if the epidemic of corona virus in China continues with this seriousness, the growth of the country's economy will also suffer. China grew 6.1 percent in 2019, seeing the lowest growth in the past 29 years. However, according to the estimates made by S&P, as long as the rate of spread of quarantine and disease continues, China's growth may be 1.2 percent less than expected for the end of 2020.
Corona virus jeopardizes both China and the world economy
Wuhan is an important region for trade and tourism in China, and the development of the corona virus hits the development of the city. The city is a major national transportation hub for the country, and factories producing parts for General Motors, Honda and many other car brands are located here. China wants its consumers to spend more to survive the economic loss .
The disease arose during the Chinese New Year holiday, one of the busiest shopping seasons of the year. Last year, during the Chinese New Year holiday, shopping records were broken, which made a major contribution to the country's economy. However, it will be difficult to reach the same levels in sales and tourism revenues due to the corona crisis. On the other hand, a deviation in the growth of China, the second largest economy in the world, may also be a risk factor for the world economy and trade.
According to the latest information, there are 830 people infected with corona virus in China . Entry and exit to Wuhan city was closed and the city was quarantined. Flights and train services outside the city were also stopped. More than one case is encountered in Thailand, Vietnam and Japan. It was stated that one case was identified in the USA, Taiwan and Singapore.