The Chinese economy is currently going through one of its worst phases because of the damages Coronavirus is doing to it. Recent reports show that China is suffering from a massive amount of economic losses in the manufacturing and service sectors because of the coronavirus outbreak. Even though the number presented by the Chinese officials shows the worrisome about existing conditions, it still doesn’t predict the harmful impacts. Purchasing managers index relating to the manufacturing and service industry has gone down at its lowest point. The damages which Coronavirus is doing much worse than experts anticipation and that’s scaring government officials. President Xi Jinping’s 2020 vision about changing the country’s economy seems quite impossible now because of the coronavirus outbreak.
Since December this deadly virus is spreading into each nation, making it one of the worst diseases of this decade. So far, more than 50 countries have been affected by it, and 85000 people have been infected. The number could be more significant, but still one can see the more substantial impact it’s bringing on the country’s economy. As of now, 2979 deaths have been reported caused by Coronavirus, and this number will be getting more prominent in the next few days as the new data comes.
Still, many people have recorded from it after taking the right precautions and medicines. Larry Hu, the chief economist, said this is the first time since the cultural revolution that they are witnessing a negative growth rate in the country. Manufacturing PMI is a critical factor because it measures factory activity has gone down to 35.7 in February, which is lower than the worst record set in November 2008 of 38.8 points. The service industry is also getting affected because of a virus outbreak. PMI for whole service industry stood at 29.6 as compared to 54.1 in January. First trade war, now coronavirus outbreak, it seems like the Chinese economy is going through their worst phase.