Coronavirus outbreak could lead to USD 50 bn trade losses: UNCTAD

The outbreak of the coronavirus disease (COVID-19) could inflict a USD 50 billion damage to international trade, the United Nations Conference on Trade and Development (UNCTAD) said on Wednesday (local time), citing its recent estimates of the situation.

"The slowdown of manufacturing in China due to the coronavirus (COVID-19) outbreak is disrupting world trade and could result in a USD 50 billion decrease in exports across global value chains, according to estimates published by UNCTAD on March 4," UNCTAD said in a statement.

It noted the drastic decrease in Chinese manufacturing due to the outbreak.

"In February, the country's manufacturing Purchasing Manager's Index (PMI) - a critical production index - fell by about 22 points to 37.5, the lowest reading since 2004. Such a drop in output implies a 2 per cent reduction in exports on an annual basis," UNCTAD outlined.

According to the tables included in the report, the top three economies said to be most affected by China's manufacturing slowdown include the European Union (USD 15.5 billion), the United States (USD 5.7 billion), and Japan (USD 5.1 billion), with Russia losing USD 149 million.