- Pakistan was also among the 20 countries most affected by the global effects of China’s slowdown through global value chains.
- The slowdown of manufacturing in China due to the coronavirus could result in a $50 billion decrease in exports across global value chains
As the outbreak of the novel Coronavirus hinders China’s economy, the disruption in the supply chain would also negatively affect Pakistan’s textile and apparel industry, revealed a report by the United Nations Trade and Development (UNCTAD).
As per the report, the Global trade impact of the Coronavirus (COVID-19) Epidemic, Pakistan textile and apparel industry would face a supply chain affect to the tune of $44 million after a two percent reduction of China exports in intermediate inputs.
Pakistan was also among the 20 countries most affected by the global effects of China’s slowdown through global value chains.
The slowdown of manufacturing in China due to the coronavirus (COVID-19) outbreak is disrupting world trade and could result in a $50 billion decrease in exports across global value chains, according to estimates published by UNCTAD.
The report stated that due to the fact that China has become the central manufacturing hub of many global business operations, a slowdown in Chinese production has repercussions for any given country depending on how reliant its industries are on Chinese suppliers.
“In addition to grave threats to human life, the coronavirus outbreak carries serious risks for the global economy,” UNCTAD Secretary-General Mukhisa Kituyi said.
“Any slowdown in manufacturing in one part of the world will have a ripple effect in economic activity across the globe because of regional and global value chains.”
According to UNCTAD estimates, the most affected sectors include precision instruments, machinery, automotive and communication equipment. Among the most affected economies are the European Union ($15.6 billion), the United States ($5.8 billion), Japan ($5.2 billion), The Republic of Korea ($3.8 billion), Taiwan Province of China ($2.6 billion) and Viet Nam ($2.3 billion).