Here are notes of the 2019 coronavirus causing economic crisis as several businesses shutdown in China and causing price hikes throughout the world. The Chinese local governments had set out rules for people to stay home leading many businesses to shut down in anticipation of fewer customers.
Disneyland’s Shanghai location.
Starbucks closed 2,000 of its 3,600 Chinese locations.
McDonalds also closed number of its restaurants.
The movie distribution company IMAX with planned multiple releases during the high grossing Lunar New Year period would take a $60 million hit to its profit if situations remain the same and people continue to stay at homes.
Toyota China stopped all factory production for sometime.
Google followed suit by shutting down all of its Chinese offices.
The effect of these shutdowns and closures are of the international impacts as many companies based in the U.S. have suspended work-travel to China.
Facebook and HSBC are known to have restricted business trips to the country China as British Airways, Air Canada, and many other airlines have grounded all flights to China over concerns of spreading the coronavirus following the last incidence of 44 Americans infected with the virus on the ship.
Apple with an announcement of a highest yearly profits of all time in America, has its Chinese firm(Foxconn) responsible for hardware production noting that despite the outbreak of the coronavirus, it is “business as usual”and with a focus tied to Apple’s goal to increase production by 10% this year to provide for growing 5G demand.
Dow Jones Averages were down 450 points, after a significant selloff.
Shanghai Stock Exchange Composite Index (SSE Composite) is down 229.92 points.
Prices for oil have retreated by 14% from the start of the year, a figure indicating a worldwide fear of a global slowdown.
The Consumption driven Chinese economy which is more than many other world economic leaders indicates that the coronavirus outbreak causing people staying home will hit its economy hard.
Beijing’s growth target of 6% would be reduced as some think tanks in the Chinese economy peg it at 5% whiles The Economist Intelligence Unit (EIU) foresees a 4.4% rate.
Would this be the start of a large scale incidence of the coronavirus causing economic crisis and a sure problem for the Chinese and Global economy?