The coronavirus crisis has affected the world economy, the United National Conference on Trade and Development (UNCTAD) has said that the slowdown of China would also be negatively impacting the textile and apparel industry of Pakistan, as per the reports of local media.
The UNCTAD’s report on global trade impact of the coronavirus Epidemic has included Pakistan in the list of 20 economies that have been badly affected by the virus.
As per the report, the slowdown of the manufacturing in China owing to the coronavirus outbreak is affecting the world trade and could lead to a $US50 billion decline in the exports throughout the global value chains.
Last month, the manufacturing Purchasing Manager’s Index (PMI) fall by nearly 22 points to 37.5, the lowest reading since 2004. Such a decline in the output indicates a 2 per cent reduction in the exports on a yearly basis.
China has become the central manufacturing location for many global businesses and their respective operations, a slowdown in Chinese production has consequences for any nation based on how dependent its industries are on the suppliers from China.
Mukhisa Kituyi the UNCTAD Secretary-General has said that besides the serious threats to human life, the coronavirus outbreak carries serious threats for the global economy.
Any slowdown in the making in one part of the world will have a disturbing effect on the economic activity throughout the globe because of the regional and global value chains.