Effects of Corona Virus on World Economy Determined

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Corona virus affects the world economy as well as human health. Economists expect China’s economic growth, the country where the virus is most effective, to drop to 4.5 percent.

Corona virus affected thousands of people after it was first detected in Wuhan in December. Currently, about 65,000 people are being treated for viruses, while the number of people who died has approached 1,900. While the Corona virus epidemic affects human health on the one hand, it also causes the world economy to be shaken on the other hand.

Some factories are still closed in China due to the Corona virus epidemic. At the same time, the travel restriction in the country continues. Limited life continues in 15 cities declared quarantine due to the Corona virus. While these measures in China slow down the spread of the virus, they also slow production and the supply chain. The economy of many countries, especially China, seems to be badly affected by the virus epidemic.

The fact that China’s economy, the second largest economy in the world, has been affected by the corona virus epidemic, has shaken the world economy deeply. The decrease in the growth in the Chinese economy means that the growth of the world economy is also affected.

The economists who took part in the survey organized by Reuters on February 7-13 said that they expect the growth of China to fall to 4.5 percent in the first quarter of 2020, below 6 percent.

China is the world’s second largest economy, as well as being the world’s largest oil importer. The slowdown in production and travel restrictions due to the Corona virus caused China’s oil consumption to drop. The International Energy Agency (IEA) announced that the demand for oil fell sharply in the first quarter of 2020 due to the Chinese economy being affected by the corona virus.

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After the Lunar New Year, the fact that some factories remained closed to slow the spread of the virus caused delays in the products and parts exported by China. Global companies are also affected by this delay.

Foxconn, Apple’s partner in China, lags behind their plans due to a glitch in the parts network. Auto manufacturers such as Nissan and Hyundai have temporarily closed their factories in China because they could not buy parts. The pharmaceutical industry is also preparing for production disruptions.

Many trade and sports activities in China and Asia have been canceled or postponed due to the Corona virus outbreak. The tourism and travel industries in the region also seem to have been affected by the virus outbreak.

According to the report released by the United Nations Civil Aviation Organization (ICAO), global airline revenues are expected to drop by $ 4-5 billion in the first quarter of 2020 due to flight cancellations.

The tourism economy of countries such as Japan and Thailand, which Chinese tourists visit more, is expected to suffer losses. It is estimated that Japan will lose $ 1.29 billion in tourism revenues and $ 1.15 billion in Thailand due to the virus outbreak.


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