COVID-19 And Its Disruption Of Chinese Economy – Analysis

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tải xuống 2The damaging outbreak of COVID-19 that began in the city of Wuhan—a major logistics and industrial hub—has serious economic implications for China as well as the wider region. The most significant impact is the disruption to manufacturing supply chains and the logistics sector. Consequently, China’s economic growth in the first quarter of 2020 will slow considerably, while also exerting a drag on the full-year growth rate.

Impact on the Manufacturing Sector

The Hubei province—of which Wuhan is the capital—is a powerhouse of steel, chemicals, electronics and auto parts manufacturing. It is the seventh largest contributor to China’s overall GDP. Following the outbreak, manufacturing units located in Hubei have been completely shut down, barring only a few exceptions.

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