China's coronavirus more toxic to the economy than the 2008 crisis

Text by: RFI Follow

The indicators published on Monday March 2 by an independent firm confirm a collapse of the indices of all the sectors of the economic activity in China. It is even worse than during the 2008 financial crisis.

Publicity

Production, orders, exports or jobs: all indicators are at their lowest. The IHS Markit study, carried out for the Caixin media group, independently calculates a "purchasing managers index". It is based on data from a large sample of companies, which therefore find that their activity is worse. In February, the contraction was even greater than that observed during the 2008 global crisis.

For more than a month, China has been subject to major containment and traffic restriction measures. In an attempt to limit the spread of the virus, Beijing has forced factories located in risk areas to shutdown. This also caused shortages in supplies for others.

What response from Beijing?

In addition to manufacturing, services - 60% of Chinese gross domestic product - are also hit. Transport, tourism, entertainment: all activities undermined by travel restrictions and the fear of being contaminated.

Work has gradually resumed , and according to most analysts, the worst is a priori past. But everyone is waiting to see what political measures will be taken by Beijing to bring the second world economy afloat.

► To listen: Coronavirus: "China's response bears the marks of renewed authoritarianism under Xi Jinping"

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• coronavirus
• China
• Economy

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