China Virus Outbreak Pressures Already Weakened Economy

The Epoch Times ^ | January 27, 2020 Updated: January 27, 2020 | al Reuters

[E. Pluribus Unum]

BEIJING—A coronavirus outbreak in China which has killed dozens of people and spread to many countries is expected to hurt its economy, an engine of global growth, though analysts say it is too early to quantify the overall impact on businesses and consumers.

The consensus is that in the short term, economic output will be hit as Chinese authorities step up preventive measures, impose travel restrictions and extend the Lunar New Year holidays to limit the spread of the virus.

Millions who usually travel during this period have canceled their plans, with the government ordering that full refunds be provided to air and rail passengers

Shanghai said on Jan. 27 that companies cannot restart operations before Feb. 9, and businesses in the eastern Chinese manufacturing hub of Suzhou have been ordered to stay shut until at least Feb. 8.

The government has lengthened the week-long Lunar New Year holiday nationally by three days to Feb. 2.

Wuhan, a city of 11 million and the epicenter of the virus outbreak in central China, is already in virtual lockdown and severe limits on movement are in place in several other Chinese cities.

Many analysts are turning to Severe Acute Respiratory Syndrome (SARS), a coronavirus that originated in China and killed nearly 800 people globally in 2002 and 2003, to better understand the likely longer-term effects.

“The economy rebounded quickly after SARS faded away,” said Larry Hu of Macquarie Capital, in a note to clients. Transportation, restaurants and retail sales were hit, but Hu said on the whole SARS was “just a blip which didn’t change the big trend.”

This time, however, analysts say China’s increased reliance on consumption to drive the world’s second-biggest economy compared to early 2000s, could undermine growth.

[tomkat]

.. Already Weakened Economy
byline: al Reuters

Nuff said.

[null and void]

Bring Out Your Dead

Post to me or FReep mail to be on/off the Bring Out Your Dead ping list.

The purpose of the “Bring Out Your Dead” ping list (formerly the “Ebola” ping list) is very early warning of emerging pandemics, as such it has a high false positive rate.

So far the false positive rate is 100%.

At some point we may well have a high mortality pandemic, and likely as not the “Bring Out Your Dead” threads will miss the beginning entirely.

*sigh* Such is life, and death...

If a quarantine saves just one child's life, it's worth it.

[thoughtomator]

boy, it’s a good thing we started disengaging then isn’t it

[caww]

It’s temporary....and anticipated before they shut it down for this virus. If indeed this is the cause rather than a plan.

[tomkat]

Silly me !
In fine FR tradition, my comment was based on having glanced at the headline and assuming al Reuters was forecasting doom/gloom for the US economy.

Fingers crossed that we’re not looking at a 1918 Spanish Flu redux . . .

[jdsteel]

Historians will look back on the China Collapse as inevitable and brought on by this virus and other external sources. That’ll be the liberal revision.

In truth, without Trump they could have limped along longer and caused more problems when they would still inevitably crash.