HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Economic fallout from Chi...

Thu Feb 13, 2020, 11:10 PM

Economic fallout from China's coronavirus mounts around the world (WP)

https://www.washingtonpost.com/business/economy/economic-fallout-from-chinas-coronavirus-mounts-across-the-globe/2020/02/13/7bb69a12-4e8c-11ea-9b5c-eac5b16dafaa_story.html

Economic fallout from China’s coronavirus mounts around the world
By David J. Lynch
February 13 at 10:34 PM

The economic casualties from China’s coronavirus epidemic are mounting as Asian and European auto plants run short of parts, free-spending Chinese tourists stay home and American companies brace for unpredictable turbulence.

That’s just the start of a financial hangover that is expected to linger for months even if the flulike illness is soon brought under control, economists and supply chain experts say. The Chinese epidemic’s aftereffects will probably cause the global economy to shrink this quarter for the first time since the depths of the 2009 financial crisis, according to Capital Economics in London.

Chinese factories had been scheduled to reopen Feb. 10, after a Lunar New Year holiday that had been extended for several days because of the medical scare. But with many workers unable or unwilling to return to employers located in a sprawling quarantine region, the resumption of routine operations in many workplaces has been delayed.

Caterpillar this week said most of its Chinese suppliers have returned to work. But Foxconn, a major electronics producer for Apple, said it will be the end of the month before even half of its facilities are operating.

The country’s links to the outside world, meanwhile, remain frayed. United Airlines and American Airlines said this week that they would not resume normal service to mainland China until April 24, almost a month later than planned.

The ripple effects of China’s shutdown are spreading, with the auto industry especially hard-hit. Nissan temporarily closed one of its factories in Japan after running short of Chinese components, one week after Hyundai in South Korea did the same. Fiat Chrysler warned that it may shutter one of its European plants. Some U.S. manufacturers could face parts shortages in one to two weeks.

“I worry that it’s going to be a bigger deal than most economists are treating it as right now,” said Mohamed El-Erian, chief economic adviser at Allianz, the German financial services company. “It will take time to restart all these economic engines.”




1 replies, 548 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 1 replies Author Time Post
Reply Economic fallout from China's coronavirus mounts around the world (WP) (Original post)
dalton99a Thursday OP
dixiegrrrrl Friday #1

Response to dalton99a (Original post)

Fri Feb 14, 2020, 04:26 PM

1. Guess who makes most of the generic drugs???



China and India.

Guess where India gets 70% of its stuff to make the drugs?
China.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread