South Africa is listed among the 20 most affected economies by the current 2% reduction in Chinese exports of intermediate inputs, according to estimates by the Unctad division on International Trade and Commodities.The authors predict that the sectors most at risk in South Africa are the automotive industry, metals and minerals, chemicals and machinery.However, the impact is well below that of the countries at biggest risk. “Overall, the most impacted economies will be the European Union (machinery, automotive, and chemicals), the United States (ma chiner y, automotive, and precision instruments), Japan (machinery and automotive), the Republic of Korea (machinery and communication equipment), Taiwan Province of China(communication equipment and office machinery) and Viet Nam (communication equipment),” states the report.There is already an impact on the regional logistics industry. One of the biggest hauliers in Namibia told FTW that his company’s volumes on the corridor between Walvis Bay and the Copperbelt had dropped by 30% since the outbreak of the virus.It is recognised as the biggest threat facing regional economies, not least because business leaders are finding it difficult to impossible to plan for it. No one can predict with certainty how long it will take to contain the virus, and in the meantime, sentiment is driving down markets and consumer spending around the world.According to GlobalData, just 6.2 million light vehicles were sold globally in January – the lowest monthly f igure since January 2012 when 5.9 million units were sold.The Covid-19 outbreak is a global crisis that is testing the resilience not only of the airline industry but of the global economy. Airlines are experiencing double-digit declines in demand, and on many routes traffic has collapsed. Aircraft are being parked and employees are being asked to take unpaid leave.In the region, one of the biggest concerns is what will happen to production if the virus gets into the mines. In addition to the human cost, it will affect both imports of chemicals and machinery, as well as exports of copper.
INSERT: The virus is recognised as the biggest threat facing regional economies. - Report
