published on 2/18/2020 at 10:35 am
The measures decided by Beijing to prevent the spread of the epidemic accentuate the supply problems.
Photo credit © Reuters
(Boursier.com) – This is another consequence of the coronavirus … Global pharmacies could face a shortage of antibiotics and other drugs if the supply problems caused by the epidemic in China do not are not resolved quickly, the European Chamber of Commerce in China warned on Tuesday.
The measures Beijing has decided to prevent the spread of the epidemic are exacerbating supply problems, said Joerg Wuttke, Speaker of the House, at a round table. The Chinese press reported on Friday that 14-day quarantine was mandatory for all arrivals to Beijing from abroad.
Disruption for many businesses
Describing this measure as unreasonable and contrary to the directives of the World Health Organization (WHO), Wuttke estimated that it “would cause more harm to companies than many other things”. He also highlighted the challenges facing the auto industry due to the disruption of equipment deliveries to China. Since these announcements, Apple has also raised the alarm. The American group believes that the global iPhone offer will be temporarily restricted by the epidemic and the factories of its suppliers would resume work more slowly than expected.
Over 1,800 deaths
The coronavirus has caused more than 1,800 deaths and infected more than 70,000 people in mainland China. The impact on the economy is therefore now palpable, with growth forecasts which have all been revised downwards in the world, like the plunge in Japanese growth. Tokyo announced a larger-than-expected decline in its Q4 2019 GDP to -1.6%, from -1% expected.
The US economy is holding up rather well for the moment, but economists still suggest an impact of 0.2 pt of GDP on average as a first approach … Economists also continue to review their growth forecasts for China. According to S&P Global Ratings, local GDP is expected to grow by 5% in 2020, against 5.7% forecast before the epidemic. In the euro area, as well as in the United Kingdom, S&P estimates the loss of growth of 0.1 to 0.2% this year, via the drop in exports and business investment due to the likely slowdown in China. .
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