give your opinion on the effect of covid 19 in present Chinese economy
Answers
Answer:
The outbreak of the novel coronavirus (COVID-19) is for the time being the most significant black swan of 2020
The expected impact of COVID-19 could be larger than of SARS in 2002-2003
China has reacted fast in comparison to SARS and introduced several unprecedented containment measures affecting the economy
The impact of the coronavirus will mostly hit China's first-quarter growth. It could extend to the second quarter as well if the outbreak lasts longer. The overall impact is likely to lower the Chinese real GDP growth rate in 2020 to approx. 5.4%
The Chinese economy is likely to bounce back after the outbreak is contained with a rise in the activity in the Q2/Q3 of 2020
The disturbance to industrial production and global trade flows and global logistic networks could be more severe due to a drag caused by the prolonged production shutdowns