02/02/2020
The truth behind the economic impact for China, by DR. THEODORE.
The impact still impossible to determine, but POWERGLOBE's estimations show that China's growth rate could drop two percentage points the first quarter of 2020, because of the outbreak, which has brought large parts of the country to a standstill. A decline on that scale could mean US$62 billion in lost growth.
Additionally, central and local governments have allocated $12.6 billion so far to spend on medical treatment and equipment. Major banks have cut interest rates for small businesses and individuals in the worst-hit areas. And the Bank of China said it would allow people in Wuhan and the rest of Hubei province to delay their loan payments for several months if they lose their source of income because of the disruption.
The People's Bank of China, the country's central bank, has said that it will ensure there is enough liquidity in the financial markets when they reopen next Monday after a 10-day Lunar New Year holiday. When Hong Kong's markets reopened earlier this week, the Hang Seng index (HSI) plunged nearly 6% in just a few days of trading.
Additionally, based on POWERGLOBE's estimations over US$36 billion projects have been either postponed or counselled in China, Asia and across the world. China's unemployment rate - already a concern - could reach a record high in the coming months. The rate traditionally has hovered around 5% or 6%.
As conclusion, the total impact could be determined close to US$138 billion. Visit Dr. THEODORE's networks to read more about other challenges across China, including the tricky trade relationship with th United States, the shrinking domestic demand in China, the trade war and the Chinese goods war.
http://ahlenfoundation.org/theodore/
http://qatar-gulenews.com
https://edition.cnn.com/business
