Multiple cities, including Beijing, Shanghai, and Guangdong, have announced a 14-quarantine for travellers arriving from other countries with severe outbreaks, such as Italy, Iran and South Korea.
Around the world, people are avoiding crowded places, staying away from offices/factories, suspending production, deferring crucial economic meetings and cancelling holiday plans to protect themselves against the air-borne infection. Each of these activities has a huge negative economic impact. The combined effects of the preventive measures could with their multiplier effects be upsetting.
IMF had in January dropped the 2020 world economic growth forecast by 0.4 percent in the heat of the trade tension between the United States and China. Any country that can, by its action or inaction, pull back the global economy by close to half of a percentage is influential by every globally influential and relevant to the growth of other economies.
No region is safe – from a fragile Europe to a hitherto stable Asia – investors are dumping stocks for less risky investment options like gold. Coronavirus is the new tsunamis, but unfortunately, nobody sits in front of the television screen to watch it sweep away its victim. Everybody, every country – poor or rich – is a victim of its range. Yes, Africa, and, indeed, Nigeria even with just an index case is a loser.
In February, the Chinese economy fell to 50 percent capacity. But last week, the Copernicus Atmosphere Monitoring Service data compiled by Windy.Com, showed a rise in the nitrogen levels – an indication that Chinese workers are heading back to factories. The economy is said to have gained an additional 10 percent to 20 percent after the removal of the community lockdown ordered by the authorities. But the issue with China goes beyond the production plants.