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Chinese growth may be hit by Wuhan virus

24 January 2020

Slowing Chinese growth may face additional head wind


Chinese growth is slowing and expected to weaken further, according to the International Monetary Fund (IMF). The economy expanded 6.1% in 2019 and is expected to grow 6.0% in 2020 and 5.8% in 2021, according to the IMF. More recently market economists have been highlighting the risks poised to the Chinese economy by the Wuhan virus, especially now that consumption makes up an increasing percentage of final demand in the country (Bloomberg). While the Chinese government is moving to contain the outbreak, if the situation worsens demand may slow for consumer goods (like cars) using petrochemical chain end products. Factory utilization rates could also be hit and purchases of chemical feed stocks may also be impacted.

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