corona virus could truncate upto 0.3% of global GDP

The outburst of corona virus in China has affected almost every sector of the world. This epidemic has killed more than 2,200 people and has affected more than 80,000 people.

China is known to be the biggest manufacturing hub, but due to outburst of corona other countries have placed severe restriction on travel, imports and exports, resulting in broken global supply chain, and smart phones aren’t exceptions here.

Asian manufacturers use 75% Chinese parts for TVs and almost 85% Chinese parts for smart phones, pinning their hopes on Chinese supplies. Broken supply chain has already shown its impact on pricing of these commodities and is believed to get even worse as, situation doesn’t seem to be coming under control anytime soon.

Many global companies have already abrogated their operations in China in the wake of the epidemic and economists have estimated that the virus outbreak could truncate global GDP by almost 0.3%.