Economic Cooperation and Development

Running Head: ECONOMICS FOR MANAGERS
ECONOMICS FOR MANAGERS
Name of the Student
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Author Note

1ECONOMICS FOR MANAGERS
Table of Contents
Impact of CoronaVirus on the Chinese Economy......................................................................2
Reference....................................................................................................................................5

2ECONOMICS FOR MANAGERS
Impact of CoronaVirus on the Chinese Economy
An epidemiological threat for instance new coronavirus has caused disease COVID-
19, which is having disruptive effects on economy around the world. As with the spread of
coronavirus, the biggest companies around the world have begun painting miserable picture
of the broken supply chains, empty stores, disrupted manufacturing and weakening demand
for wares. According to the managing director of IMF, Kristalina Georgiev, this outbreak is
the most pressing uncertainty of world. The economic disruption resulted by virus and
increased uncertainty are getting reflected in the lower valuation as well as increased
volatility in financial markets. At first, Coronavirus was detected in the Chinese city of the
Wuhan, which is nerve center in the global supply chain with the population below eleven
million. The epidemic coronavirus in China is depressing its outlook of economy
(Stankiewicz 2020).
China will be considered as the biggest reason, if coronavirus plunges world into the
recession. The economist around the world caution that its shutdown is threatening
economies of South Korea, Japan, Europe and even US. The impact is already seen by the
huge corporation such as Pfizer, AB InBev, Microsoft and Apple. China is now touching
lives of the billions of people all around the world. It has become voracious consumer of
world’s food, oil rocks and the raw material (Oecd.org. 2020). Further, China matters a lot to
business person, farmers, truck drivers, tour guides and countless others, who depends on the
Chinese economy. The contraction of output are being felt around the world, which is
reflecting rising and key role in commodity markets, global supply chains and travel markets.
The adverse impact on the confidence, travel sector, financial markets and disruption to the
supply chains has contributed to downward revisions in all the G20 economies in year 2020,
especially ones that is strongly interconnected to the China (Laura He 2020).