Coronavirus takes down USD 50 billion in global exports in February alone

Coronavirus takes down USD 50 billion in global exports in February alone

Highlights

• PMI index of China shows the lowest reading in the last 15 years.
• Lesser number of containers released from the ports of Shanghai.
• World Bank Group and the International Monetary Fund (IMF) join hands to aid the financial downfall.

COVID-19 has duly become a strong and alarming SOS and has promulgated all over the world as a trending pandemic. Sources from the Economic Times has confirmed that the damage by the novel Coronavirus has created a USD 50 Billion loss in worldwide exports.

China, who is the most trending global manufacturer of finished and intermediate products for a variety of industrial segments is in deep concern as their Purchasing Manager’s Index (PMI) cites a fall of 37.5 points – A crash which is portrayed as the lowest reading since the SARS outbreak, in 2004. The UNCTAD asserts that a perpetual cloud of anxiety and fear has covered many countries over the world as this man-made disaster can crumble their supply-chains with China.

What further drove China into a dismal in the first half of February was the lesser number of containers leaving the ports of Shanghai which had come down to 180 from 300. However, it has come back to normal in the second half. The Head of UNCATD’s Division of International Trade and Commodities Pamela Coke Hamilton asserts “Right now, the impact on the global value chains is already being felt and will continue probably for a few months.”

Picturing the current scenario, the chief of the International Monetary Fund (IMF) Kristalina Georgieva has given access to emergency financing services through the Rapid Financing Instrument.  She says “This facility could provide about $40 billion for emerging markets that could potentially approach us for financial support.” In addition to this, the head of the World Bank Group along with the IMF chief highlights that the UN-Backed global funds (50 billion dollars) for the low income and emerging markets will highly aid this economic crisis. “Thanks to the generosity of our shareholders, we have about USD 1 trillion in overall lending capacity,” says Kristalina.