Impact Of Novel Coronavirus On Chinese Economy

As of 1 February 2020, 8.45am, the total confirmed cases of the Novel Coronavirus in the world has jumped to 11,821. 259 people died of this new SARS like pneumonia. Countries around the world have implemented precautionary measures to prevent the further spread of the virus. These include suspended flights to and from China, advisories against travelling to China, temporary closures of tourism attractions, shopping centres and restaurants as well as cancellations of events, fairs involving large gatherings. With guidance from your economics tutor Singapore in economics tuition Singapore, discuss the economics impact of SARS on Chinese economy. You may sign up for economics tuition Singapore with a reputable economics tutor Singapore should you like to learn more.

The Epicentre Of Outbreak

Wuhan, the city at the epicentre of the outbreak as well as the surrounding cities in Hubei province of China are hard hit by this epidemic. As the capital city of Hubei, Wuhan is among the fastest growing cities in China with a stellar annual growth rate forecast of 7.8 per cent in 2020, much higher than the 6 per cent growth rate forecasted for entire China. Wuhan’s GDP in 2018 is US$224 billion, about 1.6 per cent of China’s total GDP. More than 300 companies on the Fortune 500 companies’ list have their presence in this populous city. In 2019, 319 million tourists from China and around the world visited Wuhan. You may discuss with your economics tutor Singapore in your economics tuition Singapore class the economic significance of Wuhan to Hubei and China. Mr Edmund Quek, principal economics tutor Singapore of Economics Cafe Learning Centre, the best economics tuition Singapore centre is well-known for incorporating current affairs into his economics tuition Singapore. Please visit his website at to find out more about this economics tutor Singapore and check out his economics tuition Singapore class schedule.

With the onset of the widespread disease, Wuhan has been locked down since 23 January 2020 as part of the unprecedented measures by the Chinese government to put the epidemic under control. People are advised to stay at home. Public transportation is suspended till further notice. People who have shown symptoms like mild fever, flu, chest pain and shortness of breath are treated in hospitals and medical centres. Medical workers in Wuhan are struggling to cope with the overwhelming demand of medical service. What’s worrying is the critical shortage of medical supplies particularly protective masks, gloves and gowns for medical workers. The epidemic has triggered global shortage of protective masks, gowns and other medical supplies. In consultation with your economics tutor Singapore in economics tuition Singapore, propose the possible government measures to address the critical shortage.

Impact On Chinese Economy

The epidemic is expected to take its toll on the country’s already fragile economy. Government’s decision to extend the Chinese New Year holidays and shut down factories could disrupt the global supply chain. Tesla has closed its newly built factory in Shanghai temporarily. Apple too, has experienced disruption in production from its suppliers in Wuhan. The closure of popular tourist attractions and shopping centres, as well as postponement of highly-anticipated movie premieres will also have a significant negative impact on the country’s economy. In addition, unemployment rate is expected to surge. Out of 290 million migrant workers in China, some 10 million are from Hubei province. These migrant workers are likely to face difficulty in landing a job after extended Chinese New Year holidays. In discussion with your economics tutor Singapore in your economics tuition Singapore class, list other possible economic implications of this Novel Coronavirus on the Chinese economy.

Some believe that the epidemic could shave 2 percentage points off its GDP growth this quarter, which is equivalent to US$62 billion. Others take a more optimistic view. They anticipate the growth of the world’s second largest economy to rebound in the second quarter and the impact on its full year GDP growth to be 0.4 per cent. The exact magnitude of its economic impact has yet to be determined.

Linda Geng

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