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2020.02.26 01:25 GMT+8

Tanzanian economist says impact of virus on China’s economy is limited

Updated 2020.02.26 01:25 GMT+8
CGTN

As governments around the world remain alert in efforts to stop the spread of COVID-19, economists say the impact of the epidemic on China’s economy is limited.

They argue that the world’s second biggest economy will be back on track as early as the second quarter of this year.

A Tanzanian economist, Prof. Humphrey Moshi is confident the current shortages faced around the world caused by a temporary halt in production by some Chinese companies will end as soon as the epidemic is dealt with.

"If you close a shop, if you close an industry, automatically it will create a shortage somewhere and once it increases a shortage somewhere inflation will also increase. And that’s why you’re seen also in China, inflation has been going up. But the good news is that is very temporary phenomenon because once the epidemic is taken care of adequately is very easy to ensure production," Prof Moshi said in an interview with CGTN.

The efforts initiated by the Chinese government to tackle the spread of the virus have boosted confidence among the world’s investors.

Various companies have also resumed production, and are optimistic that the situation will return to normalcy soon.

Prof. Moshi said investors are eager to resume travels to China to seek commodities.

"The traders are the ones who are most frustrated, because they are used to make frequent trips to China to buy the commodities to come to selling the domestic market. So those are the ones who are waiting eagerly to see, when this virus going to be cleared. Everybody is eager, waiting to see that they resume trade relationship with China as soon as possible," he said.

As of February 25, 27,323 people had recovered from the COVID-19 in China. The total number of confirmed cases stood at 77,779 in China and 2,300 abroad. Some 2,666 have been reported in China (including 2 in Hong Kong, 1 in Taiwan), and 33 abroad.

China has received messages of solidarity from all around the world, the latest coming from Ethiopian Prime Minister Abiy Ahmed and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al Nahyan.

In separate phone calls on Tuesday, Chinese President Xi Jinping appreciated the help and support of the United Arab Emirates (UAE) and Ethiopia in the fight against the COVID-19 outbreak.

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