Geneva [Switzerland], Mar 5 (ANI): The slowdown of manufacturing in China due to coronavirus (Covid-19) outbreak is disrupting world trade and could result in a 50 billion dollar decrease in exports across global value chains, according to estimates published by the United Nations Conference on Trade and Development (UNCTAD).
India is among the 15 most-affected economies due to coronavirus epidemic and slow down in production in China with a trade impact of 348 million dollars. Among the most affected economies are the European Union (15.6 billion dollars), the United States (5.8 billion dollars), Japan (5.2 billion dollars), South Korea (3.8 billion dollars), Taiwan (2.6 billion dollars) and Vietnam (2.3 billion dollars).
In February, the country’s manufacturing Purchasing Manager’s Index (PMI) — a critical production index — fell by about 22 points to 37.5, the lowest reading since 2004. Such a drop in output implies a 2 per cent reduction in exports on an annual basis.
Because China has become the central manufacturing hub of many global business operations, a slowdown in Chinese production has repercussions for any given country depending on how reliant its industries are on Chinese suppliers.
“In addition to grave threats to human life, the coronavirus outbreak carries serious risks for the global economy,” said UNCTAD Secretary General Mukhisa Kituyi.
“Any slowdown in manufacturing in one part of the world will have a ripple effect in economic activity across the globe because of regional and global value chains,” he said in a statement.
According to UNCTAD estimates, the most affected sectors include precision instruments, machinery, automotive and communication equipment. The estimated global effects of Covid-19 are subject to change depending on the containment of the virus and or changes in the sources of supply.
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