Corona virus epidemic is dangerous to the world's economy!
 |
The virus first began to spread in Wuhan, China, in
December 2019 - Photo: AFP
|
With the beginning of 2020, the third decade of this century has also begun. The challenges that the world faced at the beginning of this decade have increased manifold.
Iran's tensions have warmed the diplomatic front, where the world suffered severe cold weather hardships in the beginning of 2020 due to climate change. This tension has led to deep concern for the global economy, especially China and its dependence on oil and fuel.
But the silent diplomacy of Iran and the United States took place and the dangers of war in the region went away. However, with the erosion of these risks, a threat began to rise, which once again threatened to break the global economy with China's economy, and the threat is called the Corona virus.
It may seem strange to hear what a virus does to the world economy, but to a deeper and deeper connection, which you will come to know in advance.
But the silent diplomacy of Iran and the United States took place and the dangers of war in the region went away. However, with the erosion of these risks, a threat began to rise, which once again threatened to break the global economy with China's economy, and the threat is called the Corona virus.
It may seem strange to hear what a virus does to the world economy, but to a deeper and deeper connection, which you will come to know in advance.
The death caused by this new virus from the Chinese city of Wuhan has created an atmosphere of fear around the world.
The virus, which has spread since December, has killed more than 900 people. The Chinese city of Wuhan occupied more than 100 million people in their homes and quarantined the city. The eyes of the country and the international media are rooted in every single news related to the virus.
The virus, which has spread since December, has killed more than 900 people. The Chinese city of Wuhan occupied more than 100 million people in their homes and quarantined the city. The eyes of the country and the international media are rooted in every single news related to the virus.
A few weeks ago, the Chinese Consul General posted in Karachi invited officials of the Karachi Press Club to tea, and the ceremony also discussed the effects of the Corona virus. The Chinese Consul General confidently said that his nation would get rid of the disease as soon as possible. The government has also canceled Chinese New Year's celebrations to prevent the spread of the virus.
The Corona virus outbreak, which has been publicly visible since December, is turning to other countries around the world. The World Health Organization issued a warning against the Corona virus on January 30, saying that the outbreak could spread rapidly around the world, meaning the whole world could take the issue seriously and cope with the outbreak. Use the resources globally.Shock to the stock markets
Stock markets hit first because of Corona virus surge Investors are worried that the outbreak will not devour the world economy, including China. The major reason for this fear is that the economy has already suffered huge losses due to the outbreak of SARS.
The Corona virus outbreak, which has been publicly visible since December, is turning to other countries around the world. The World Health Organization issued a warning against the Corona virus on January 30, saying that the outbreak could spread rapidly around the world, meaning the whole world could take the issue seriously and cope with the outbreak. Use the resources globally.Shock to the stock markets
Stock markets hit first because of Corona virus surge Investors are worried that the outbreak will not devour the world economy, including China. The major reason for this fear is that the economy has already suffered huge losses due to the outbreak of SARS.
China is the world's economic leader and the world's second largest economy, so the effects of China's situation will have a ripple effect on the world, and the effects are visible. It can be said that the Chinese economy depends on the Chinese economy as China accounts for 20% of world production and China accounts for a fifth of the global economy.
All US stock market indices closed on Friday, February 7th. On that day almost all the stock markets closed down. Index Dow Jones ended the day with 277 points, Nasdaq 51 points and S&P 18 points.
The stock market also saw a significant drop in the share of companies that do large-scale business in China, among them the leading Apple company whose share price has dropped 1.36%. City Group, General Electric, also closed in the negative zone. In addition, Hong Kong closed on 89 points, Japan's Nikkei 45 points, Germany 60 points and London's FTSE index with 37 points.
As well as stock markets, fuel markets around the world are beginning to have an impact. China is the largest fuel buyer in the world. If its economy is restricted to a major province because of the Corona virus, and in other areas, work from home rather than offices is being preferred, then fuel consumption is also reduced.
At the beginning of 2020, when the US-Iran tensions were booming, the price of a barrel of crude oil reached $ 70, but last Friday, it closed at $ 55 a barrel. Experts have predicted that global petroleum prices could drop by as much as $ 5 a barrel.
All US stock market indices closed on Friday, February 7th. On that day almost all the stock markets closed down. Index Dow Jones ended the day with 277 points, Nasdaq 51 points and S&P 18 points.
The stock market also saw a significant drop in the share of companies that do large-scale business in China, among them the leading Apple company whose share price has dropped 1.36%. City Group, General Electric, also closed in the negative zone. In addition, Hong Kong closed on 89 points, Japan's Nikkei 45 points, Germany 60 points and London's FTSE index with 37 points.
As well as stock markets, fuel markets around the world are beginning to have an impact. China is the largest fuel buyer in the world. If its economy is restricted to a major province because of the Corona virus, and in other areas, work from home rather than offices is being preferred, then fuel consumption is also reduced.
At the beginning of 2020, when the US-Iran tensions were booming, the price of a barrel of crude oil reached $ 70, but last Friday, it closed at $ 55 a barrel. Experts have predicted that global petroleum prices could drop by as much as $ 5 a barrel.
Like oil, natural gas and LNG prices are also witnessing a global decline. Natural gas was purchased and sold for $ 86 cents per million British thermal units (MBTU), the lowest price in the natural gas trading history.
Gas prices have dropped 15% since the beginning of the year, while the price of LNG has dropped to $ 3 per MMBTU, a sharp drop in fuel prices, especially in oil-producing countries, especially Saudi Arabia and Russia. There is concern.
China is the main supplier of raw materials and spare parts to the world. Industries operate in other countries on the basis of spare parts made in China, but in view of the outbreak in China, industries and trade centers in many other regions of the country may be closed. If the industries had to shut down for a long period of time, this would have a very negative impact on China's economy as well as the global economy.
Now consider Apple, a US company with 10,000 employees in China. Apple is an American brand that manufactures technology-related devices, including mobile phones, tabs and computers, but China has an important role in the supply of spare parts. Apple has banned staff from coming to China, including moving its foreign executives from China to the United States.
If Apple's factory in China is closed for long, Apple may face delays in introducing its new mobile phones and other devices in the US. Similarly, various product industries, including automobiles, electronics and chemicals will be affected worldwide. If it is to be said that the economy of many developed countries, including the United States, depends on China's economy, it would not be unwise. That is why concerns about the decline in China's economy are increasing in the global economic system.
$ 30 billion from bird flu (H5N1) virus from 2004 to 2009 before Corona virus, $ 50 billion from swine flu (H1N1) spreading from 2006 to 2011, $ 10 billion from Ebola virus and about $ 12 billion from Zika virus. Has been damaged.
By 2020, China's growth rate was already declining, and it was expected that the Chinese economy would grow at 6.1 percent, the lowest rate in the last 3 decades, and now the situation would have been worse after the outbreak. Is looking
Gas prices have dropped 15% since the beginning of the year, while the price of LNG has dropped to $ 3 per MMBTU, a sharp drop in fuel prices, especially in oil-producing countries, especially Saudi Arabia and Russia. There is concern.
China is the main supplier of raw materials and spare parts to the world. Industries operate in other countries on the basis of spare parts made in China, but in view of the outbreak in China, industries and trade centers in many other regions of the country may be closed. If the industries had to shut down for a long period of time, this would have a very negative impact on China's economy as well as the global economy.
Now consider Apple, a US company with 10,000 employees in China. Apple is an American brand that manufactures technology-related devices, including mobile phones, tabs and computers, but China has an important role in the supply of spare parts. Apple has banned staff from coming to China, including moving its foreign executives from China to the United States.
If Apple's factory in China is closed for long, Apple may face delays in introducing its new mobile phones and other devices in the US. Similarly, various product industries, including automobiles, electronics and chemicals will be affected worldwide. If it is to be said that the economy of many developed countries, including the United States, depends on China's economy, it would not be unwise. That is why concerns about the decline in China's economy are increasing in the global economic system.
$ 30 billion from bird flu (H5N1) virus from 2004 to 2009 before Corona virus, $ 50 billion from swine flu (H1N1) spreading from 2006 to 2011, $ 10 billion from Ebola virus and about $ 12 billion from Zika virus. Has been damaged.
By 2020, China's growth rate was already declining, and it was expected that the Chinese economy would grow at 6.1 percent, the lowest rate in the last 3 decades, and now the situation would have been worse after the outbreak. Is looking
How Much Can the Corona Virus Affect the
Chinese Economy?
Since the outbreak of the Corona virus, worldwide efforts have been made to estimate how much the outbreak will affect China's economy and its effects on the global economy.
According to US-based investor Standards, China can control the Corona virus by April this year. If this happens, the Chinese economy will stabilize again by the end of 2020, while the recovery journey may be in place by 2021.
US investment bank Goldman Sachs says China's GDP will remain at 5.5 percent, while its GDP target was 5.9 percent. If the epidemic is prolonged, then the Chinese economy is likely to remain at 5%. According to the bank, the outbreak of the virus in China could cause the US economy to decline by 0.4 percent while the US production rate is likely to remain at 1.7 percent.
Infectious disease will affect not only China but the United States. 7% of tourists coming to the US are Chinese. Spending costs an average of $ 6,000 per person in terms of tickets, hotel rentals, restaurants and shopping costs. The United States earns about $ 5 billion 80 million annually from Chinese tourists. The epidemic is likely to reduce this income.
The World Bank says the chances of the spread of catastrophic diseases are increasing day by day due to environmental changes, increase in urban population, shortage of useable water and deterioration of sewerage system, poor sanitation system. In countries afflicted with epidemic diseases, medical problems can increase, as well as commodity prices, inflation, poverty and unemployment. If the epidemic spreads to vulnerable or troubled states, it can be very difficult to control it.
The World Bank says pandemic diseases are the only threat to the global economy since the global financial crisis in 2008, the same crisis that has had profound adverse effects worldwide.
World Bank says low and middle income countries will have to invest $ 9 billion by 2050 to prevent pandemic diseases. No country can individually manage infectious diseases. It is important to keep a coherent, public health care perspective. All countries will have to improve the disease surveillance, diagnostic process and improve their ability to cope.
US investment bank Goldman Sachs says China's GDP will remain at 5.5 percent, while its GDP target was 5.9 percent. If the epidemic is prolonged, then the Chinese economy is likely to remain at 5%. According to the bank, the outbreak of the virus in China could cause the US economy to decline by 0.4 percent while the US production rate is likely to remain at 1.7 percent.
Infectious disease will affect not only China but the United States. 7% of tourists coming to the US are Chinese. Spending costs an average of $ 6,000 per person in terms of tickets, hotel rentals, restaurants and shopping costs. The United States earns about $ 5 billion 80 million annually from Chinese tourists. The epidemic is likely to reduce this income.
The World Bank says the chances of the spread of catastrophic diseases are increasing day by day due to environmental changes, increase in urban population, shortage of useable water and deterioration of sewerage system, poor sanitation system. In countries afflicted with epidemic diseases, medical problems can increase, as well as commodity prices, inflation, poverty and unemployment. If the epidemic spreads to vulnerable or troubled states, it can be very difficult to control it.
The World Bank says pandemic diseases are the only threat to the global economy since the global financial crisis in 2008, the same crisis that has had profound adverse effects worldwide.
World Bank says low and middle income countries will have to invest $ 9 billion by 2050 to prevent pandemic diseases. No country can individually manage infectious diseases. It is important to keep a coherent, public health care perspective. All countries will have to improve the disease surveillance, diagnostic process and improve their ability to cope.
0 Comments