China Covid Situation: Corona is wreaking havoc in China. This is not only fatal for its own economy, but it is going to affect the whole world. India will also not remain untouched by this. Understand what the figures say…
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China Covid Impact on World Economy: At present, the condition of Covid in China is such that there is neither space on the roads nor in hospitals. Rather, the situation is the same everywhere, people suffering from diseases and people dying every moment. Corona’s new variant BF.7 is wreaking havoc there. According to an estimate, China may be hiding the figures, but the daily death toll from Corona there is close to 5,000. At the same time, statistics show that the increasing outbreak of Corona in China will not only affect its economy but also the world economy. India is also not going to remain untouched by this.
Health Economist and Epidemiologist Eric Feigl Ding Quoting ET, it has been written that within the coming three months, where 60 percent of the population of China and 10 percent of the world’s population can be infected with Corona. Crores of people will die in this, it will affect every economy of the world.
China’s corona effect on India
The last time when the first wave of Corona came, there was a complete three-month lockdown in India from April to June 2020. A quarter of India’s economy was wiped out in this. At the same time, the expenditure of the government increased so much that it had to face a huge fiscal deficit in the financial year 2020-21. The government’s fiscal deficit ie fiscal deficit reached a record 9.2 percent against GDP.
Head of Economist Intelligence Unit in ESG Rating Service regarding the situation this time Swaroop Gupta says that the new variant of Corona spreading in China will definitely affect India, but due to the vigilance of the government, there is a possibility that this time the situation will be under control.
China is important, cannot be ignored
The world needs China, believes Bandhan Bank Chief Economist Siddharth Sanyal Of. He says that if China slows down, or there is a situation of shutdown in China for the next three-four months, then definitely the process of improving the global economy will be affected.
China is currently the second largest economy in the world. And no one can deny that how much smaller economies or weaker countries depend on it.
China’s manufacturing hub will be closed
Experts say that due to COVID, China’s manufacturing hub will be affected. Many countries of the world, including India, depend on goods made in China, especially for electronic and telecom related devices. All these are necessary to maintain good growth. In such a situation, if Corona wreaks havoc in China, then their supply will be affected.
In the 12 months before March 2022, merchandise trade between India and China has increased by 34 percent. It has been 115.83 billion dollars. At the same time, between April 2022 and October 2022, it has been $ 69.04 billion. Even though India is trying to reduce its dependence on China, but still most of its imports are from China.
At the same time, from India’s electronic, apparel manufacturing companies to gold and diamond exporters, fear of supply chain problems and lack of demand has started troubling them. India’s pharmaceutical industry depends on APIs imported from China. Its share is up to 25 percent.
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