In recent days, the People’s Bank of China injected 242 thousand 740 million dollars into the financial system in order to strengthen confidence in investors

In terms of the global economy, the novel coronavirus epidemic could be more catastrophic than the SAR one 17 years ago.

To date, more than 490 deaths from coronavirus infection have been reported and it is estimated that around 24,500 people have been infected worldwide.

However, experts assure that in the days to come, the consequences of this epidemic will be much more noticeable in the Asian country.

Coronavirus would infect the global economy

The sectors most affected by the “paralysis” in China are the oil, tourism and automotive. Today the streets look empty, mobility services are scarce. Millions of inhabitants remain in quarantine, locked in their homes.

Chinese consumption plummeted after the cancellation of the New Year celebrations. Tourist attractions, offices and factories remain closed. The big international franchises are inactive; including Starbucks and McDonald’s.

As for the auto industry, Volkswagen, BMW, Volvo, Toyota and Tesla extended their annual production breaks. So far the largest refinery in China reduced production, as there is no demand.

The next 14 days will be decisive for the world economy. Finally, experts estimate that China could lose one point of its gross domestic product (GDP) in the year. This would remove it 0.4 points from international GDP.

Without a doubt, the Chinese economy is threatened and the new coronavirus could infect the global economy to the point of unseating the Asian country from its place as the second world power.