Most industries in China shut down over the four weeks. The majority of factories were not expected to open still due to this issue. Also, millions of people remained locked down in dozens of cities across the country. Carmakers like Toyota are shutting plants, coffee outlets are closed, and the logistics centres far quieter than usual.
China’s economy grew by 6% last year. The coronavirus makes that unfavourable to China. Most analysts are still indicating growth well above 5% for the Chinese economy, even with the influence of the virus spread, and the likely impact on consumers, businesses and government.
The economic recovery of China will depend on how fast gets a handle on the outbreak, and the level of stimulus it can provide. Economists say the current level of disruption is manageable. On February 3, the People's Bank of China released RMB1.2 trillion ($173 billion) into the financial markets and lowered interest rates. Central banks in neighbouring countries including Sri Lanka, Malaysia, Thailand and the Philippines have cut interest rates in recent weeks. South Korea and Taiwan could be next.
China is making every effort to control the situation; The low spreading rate of the virus is showing a positive indication for the economy. However, I believe that it will not go up to the global financial crisis.