Coronavirus is Slowing Down, and Chinese Economy is Mending
Despite some positive reports on Tuesday that the Coronavirus outbreak is slowing down, experts are warning against any exaggerated optimism. For the first time since 30th January this year, China reported less than 2,000 new infections a day. Additionally, the reports on Tuesday indicate that only 98 deaths occurred. This figure is the only one below 100 deaths since 11th February when the virus outbreak was entering its third month.
It Might Be A Variability
Dr. Anthony Fauci, a member of the Coronavirus outbreak task force set up by President Trump, expressed fears that this might be a variability. In his opinion, it is too early to determine whether the virus is slowing down. He opines that other previous outbreaks of the same nature show a temporary variability. The outbreaks then continue to run rampage after seeming to slow down shortly.
As of Tuesday this week, there were more than 73,000 reported Coronavirus cases worldwide. The majority of these cases are in China in the Wuhan region. Wuhan is a city in central China with a population of 11 million people.
The reported number of deaths by Tuesday in China stood at 1,874 deaths. This figure puts the mortality rate of the Coronavirus at an astonishing 2.5%, making it more lethal than most other virus outbreaks. The effect of this on the Chinese economy and the world economy is a slowdown that is threatening China’s GDP.
Other Experts Agree
Dr. Fauci, director of the National Institute of Allergy and Infectious Disease, saw his sentiment receive support from a WHO official. The WHO Director-General, Tedros Adhanom, opines that we should treat data arising from the Chinese government with keenness. He says that although the data shows a decline in the number of new cases and deaths reported, there should be caution in interpreting it.
The Chinese government implemented radical measures in curbing the spread of the virus. Among these measures was restricting the movement of about 50 million people, a majority of them in Wuhan. Dr. Fauci views this as a move to prevent new cases and the spread of the virus to other cities and countries as well.
Dr. Fauci also opines that this does not seem like a well-thought-out strategy, but it is working, albeit much criticism. In other instances of such breakouts before, the governments of the concerned countries did not choose radical measures like this one.
A Boost For The Chinese Economy
Despite economic news, analysts suggest that it will take time before economic activities rebound. This week, it appeared that economic activities were resuming after an extended Lunar New Year holiday. Many retail shops and even some operating plants reopened earlier this week, and workers reported to work.
Among the industries that appear to be weathering the Coronavirus storm is the automotive industry. This week, several giant automotive companies reopened their plants. Fiat Chrysler, General Motors, and Toyota all reopened their plants on Monday.
Apart from the automotive industry, the food industry also seems to be picking up slowly. The CEO of Mondelez, the company that makes Oreo, Dirk Van de Put announced they reopened four plants. He added that the plants are, however, not operating at full capacities.
