Corona to cause US$ 50 bn dip in world exports: UN
Economists at the United Nations announced a likely USD 50 billion drop in the worldwide manufacturing exports in February’20 owing to the impact of the novel coronavirus (COVID-19). Pamela Coke-Hamilton, UNCTAD’s Division on International Trade and Commodities head, cited the China Manufacturing Purchasing Manager’s Index (PMI) that had tripped to 37.5 – a drop of about 20 points – the lowest reading since 2004. This development is likely to have resulting “ripple effect” worldwide “to the tune of a USD 50 billion fall in exports” since China has become the main supplier of finished products and so-called “intermediate” products used in countless industries.
“Of course, if the virus continues to spread and gets out of control, and we see closures not only in China but also in India and the United States and everywhere else in the world, then it would be a big problem,” Alessandro Nicita from UNCTAD’s Division on International Trade and Commodities stated.
The IMF Managing Director, Kristalina Georgieva, said in a press conference that the UN-backed global funds would make up the shortfall.