LAHORE = Shahid Rasheed Butt former President ICCI said Coronavirus has started hitting the global economy after inflicting heavy losses of the world’s second-largest economy China that has a 20 percent share in the global GDP.
The losses due to the coronavirus can surpass the harm done to the global economy by the trade war between the US and China, said Shahid Rasheed Butt former President ICCI.
The whole world should unite to confront the treat otherwise, it will add to the global slowdown, he said.
Shahid Rasheed Butt said that demand has reduced in China hurting trade globally but its neighbors will feel more paid.Â
The demand for oil and gas is going down resulting in sliding prices while OPEC will have to cut production by two million barrels per day to avoid a surplus, he added.
The business leader said that China is doing best to overcome the problem but global supply chains have already been disrupted resulting in shortages and closures of manufacturing facilities.
Many companies have stopped business with China and the outbreak can compromise Chinese GDP by one percent in the near term which means that global GDP which is already at the lowest ebb will suffer by 0.4 percent.
China is a very close friend and neighbor but we should do whatever is necessary to stop the virus from spreading into Pakistan, he said.
