The Coronavirus was first reported in the city of Wuhan. Thus posing as a massive threat to the financial market globally. The city is well known for its enormous production of vehicles and its central location. With a combined population of 24 million and more, Wuhan and four other cities are in lockdown due to the spread of the virus. The Coronavirus affected most of the Chinese population as the Lunar New Year period began on 25 January. At this period, the majority of the Chinese jam-park the busy streets, trains, buses, and airplanes to travel and celebrate with loved ones.
With the suspension of buses, trains, and flights, people fear that this may be an epidemic similar to the SARS outbreak in 2003. The SARS outbreak killed almost 800 people and infecting 8000 others. Moreover, fear is rising among the nation that the virus could stagnate the growth of the World’s second-largest economy. China became a member of the World Trade Organization two decades ago. Receiving a vital global role in the economic prospects of counties and firms. Markets in Shenzhen, Shanghai, and Hong Kong reported a sharp decline on Thursday last week of 3.5%.
Anglo American, Rio Tinto, and Glencore were among mining companies affected by the Wuhan virus as they sell their products to companies in china. Since the outbreak, there is a constant fall off Shares prices in airlines, hotels, and luxury retailers. The same is also happening to the oil price in the international market as it fell by 3% as of last week. For European luxury brands such as Gucci, the Lunar Eclipse Period is a significant period for them. According to the analyst, the travel bans may pose a challenge to the industry. If the virus is not dealt with in time, the catastrophe may spread affect the tourism and travel sectors within days. Experts predict that the US- Chinese trade wars may make things worse, and the industrial manufacturing department may struggle for a while.
By the end of 2019, the unemployment sector and economics activities in china were stabilizing. But with the outbreak of the virus, all this might change and return to the norm. Wuhan hosts China’s most giant car manufacturer, Dongfeng. Also, it has a population of 11 million people in it. In 2018 the city produced a GDP of $224 billion. The Coronavirus is similar o the SARS virus that led to a decline in the Chinese economy in 2003. However, according to officials in China, they are working hard to try and prevent the results experienced in 2003.