UN: "Global exports down 60 trillion won due to COVID-19... South Korea's exports down 4.5 trillion won"
[Asia Economy Reporter Jeong Hyunjin] It is forecasted that global exports will decrease by $50 billion (approximately 60 trillion KRW) this year due to the spread of the novel coronavirus infection (COVID-19), with South Korea's exports expected to decline by $3.8 billion (approximately 4.5 trillion KRW).
The United Nations Conference on Trade and Development (UNCTAD) announced this in a report analyzing the impact of COVID-19 on trade, released on the 4th (local time). By country and region, the European Union (EU) is expected to experience the largest export decline at $15.6 billion, followed by the United States with $5.8 billion, Japan with $5.2 billion, and South Korea with $3.8 billion.
UNCTAD's analysis is based on the fact that China has become a key manufacturing hub in the global supply chain, and a slowdown in Chinese production is expected to affect global trade. UNCTAD reported that due to the COVID-19 outbreak, China's manufacturing Purchasing Managers' Index (PMI) in February this year fell to 37.5, the lowest since 2004. This was attributed to the extensive lockdown policies implemented by Chinese authorities last month to curb the spread of COVID-19, which nearly halted manufacturing activities within China.
By industry sector, precision instruments, machinery, automobiles, and telecommunications equipment are expected to be most affected by COVID-19. UNCTAD pointed out, "Factories producing intermediate goods for the automobile manufacturing industry are concentrated in regions where COVID-19 has spread, so exports are expected to decline relatively more."
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
- "Am I Really in the Top 30%?" and "Worried About My Girlfriend in the Bottom 70%"... Buzz Over High Oil Price Relief Fund
- "It Has Now Crossed Borders": No Vaccine or Treatment as Bundibugyo Ebola Variant Spreads [Reading Science]
Mohisa Kituyi, Secretary-General of UNCTAD, explained, "The outbreak of COVID-19 poses a significant threat to human life and also carries serious risks for the global economy," adding, "A slowdown in manufacturing in any region of the world will have ripple effects on global economic activities due to regional and global value chains."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
