<\/p>\n
\u201cThere is a ripple effect throughout the global economy to the tune of a $50 billion fall in exports across the world,\u201d Pamela Coke-Hamilton, director of UNCTAD\u2019s division of international trade, told a Geneva news briefing.<\/p>\n
<\/p>\n
The figure, which covers only the month of February, is preliminary and may be a \u201cconservative estimate\u201d, she said.<\/p>\n
<\/p>\n
It was partly based on China\u2019s official Purchasing Managers\u2019 Index (PMI), issued on Saturday, showing factory activity in China contracted at the fastest pace ever in February, even worse than during the global financial crisis, highlighting the colossal damage from the coronavirus outbreak.<\/p>\n
<\/p>\n
Countries or regions suffering the highest export losses due to the disruption are the European Union (EU), with nearly $15.6 billion, the United States ($5.8 billion), Japan ($5.2 billion), the Republic of Korea ($3.8 billion), Taiwan ($2.7 billion) and Vietnam ($2.3 billion), according to the U.N. Conference on Trade and Development (UNCTAD).<\/p>\n
<\/p>\n
Precision instruments, machinery, automotive and communication equipment are the hardest-hit sectors, it said in its report which does not cover agriculture or services.<\/p>\n
<\/p>\n
Alessandro Nicita, an UNCTAD economist, said that carmakers Honda and Hyundai and other industries are closing plants in Japan because of lack of Chinese parts and components.<\/p>\n
<\/p>\n
\u201cThe impact on the automotive industry in the European Union is about $2.5 billion,\u201d he added.<\/p>\n
<\/p>\n
Asked whether manufacturers might shift to diversify suppliers, Nicita said: \u201cIn the short term, no. Because it takes a while to identify new suppliers. In the long term, probably yes.\u201d<\/p>\n
<\/p>\n
China has built a huge logistics transport network including ports,\u00a0shipping\u00a0lanes and airplanes to move its goods, he said.<\/p>\n
<\/p>\n
Referring to a gradual resumption in China\u2019s industrial production, he said: \u201cIf it rebounds it can probably make up for the loss in February. If it stays low those numbers are going to compound and the situation for the global value chain is going to deteriorate even further.\u201d<\/p>\n
<\/p>\n
India, the world\u2019s main supplier of generic drugs, has restricted the export of 26 pharmaceutical ingredients and the medicines made from them, including paracetamol, a common pain reliever also sold as acetaminophen, as the coronavirus outbreak plays havoc with supply chains.<\/p>\n
<\/p>\n
Coke-Hamilton, asked whether such restrictions indicated the virus was having a \u2018strangulating\u2019 effect on the global supply chain, said: \u201cIn short, yes. It would seem so.\u201d<\/p>\n
<\/p>\n
\u201cAssuming that it is not mitigated in the short term, it is likely that the overall impact on the global economy is going to be significant in terms of a negative downturn,\u201d she said.<\/p>\n
<\/p>\n
(Reporting by Stephanie Nebehay; editing by Michael Shields and Elaine Hardcastle)<\/p>\n
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\u201cThere is a ripple effect throughout the global economy to the tune of a $50 billion fall in exports across the world,\u201d Pamela Coke-Hamilton, director of UNCTAD\u2019s division of international trade, told a Geneva news briefing. The figure, which covers only the month of February, is preliminary and may be a \u201cconservative estimate\u201d, she said. …<\/p>\n","protected":false},"author":1,"featured_media":5674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[2068,2707,777,2469,2470,2708,1375,2706,2705],"class_list":["post-5673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marine-world","tag-billion","tag-caused","tag-chinese","tag-exports","tag-fall","tag-februarys","tag-global","tag-parts","tag-shortage"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/5673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=5673"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/5673\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/5674"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=5673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=5673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=5673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}