BEIJING/BERLIN: As the new virus is going on the rampage worldwide, the European continent has started to feel the toll the nCovid-19 (coronavirus) has taken on its economy. In major economies such as Germany, France, Britain and Italy, economic outlook seems to have become grim as people fear for disruptions in supply chains and volatility in markets.
People recovered from coronavirus preparing to leave the rehabilitation center after a 14-day quarantine for medical observation in Wuhan in central China's Hubei province. The province at the centre of China's virus outbreak is allowing factories and some other businesses to reopen in a new sign Beijing believes the outbreak that devastated its economy is being brought under control.
The German industry, which has already shown first signs of weakness amid the spreading coronavirus, is now"threatened by the longest recession since reunification," the Federation of German Industries warned, pointing out a direct connection between the economy's downward trend and the spread of the virus.
The epidemic has a"serious impact" on the French economy, the country's Economy and Finance Minister Bruno Le Maire said earlier this week, adding the growth rate may fall below 1 percent this year from a previous prediction of 1.3%. Temporary but significant disruptions to supply chains and weaker activity could challenge cash flows and increase demand for short-term credit from households and for working capital from companies, it said, adding such issues are likely to be most acute for smaller businesses.
"We are very sure over the next quarters this recovery will accelerate. And hopefully in the second half of the year, we are coming back to more regular businesses. Now in the mid- and long-term we will remain very very positive," he said. "Our factory in Yichang in Hubei Province is so far not fully operational, but we have worked with the authorities to be able to prepare for the restart ... we hope to see the possibility by mid-March of reoperation as it used to be," he said.
"Around 5,000 German companies have been established in China and many have manufacturing there," Haug said.
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