The coronavirus effects have been seen on the world’s second-largest economy i.e. China. According to official data released on Saturday, China’s manufacturing activity in February has seen a record low.
Not only this, the stock market is at its lowest level since the 2008 recession. Since then, there is a growing fear that the virus may have a major impact on the global economy. This information has come out at a time when the coronavirus effects are spreading rapidly in many countries around the world.
Economic analysts had already warned that China’s economic growth in the first quarter would have a widespread impact due to the coronavirus, and the data released on Saturday was the first example. The industry has been affected due to Corona.
Purchasing Managers Index (PMI) to measure the economic health of the manufacturing sector was at 35.7 points in February. If its figure is above 50, it is believed that the sector is expanding, while going below it means a fall. It was 50 in January. This figure began to record in 2005, the worst figure since.
It was the first official economic indicator published for the month of February, which showed the devastating impact of the epidemic on China’s economy. Its impact is likely to be seen worldwide. The National Bureau of Statistics said it had the highest impact on the auto and specialized equipment industries, but remained in the non-manufacturing sector.
Factories that make smartphones, toys and other goods around the world are struggling to get operational again after the virus spread to China. China’s economy has stagnated. Although the ruling Communist Party in China has assured help, companies and economists believe it will take months to normalize production.