How coronavirus is affecting the global economy

China is significant in the nexus of the global supply chain. The deadly coronavirus has put a strain on different sectors of the global economy.

Here's a list of sectors that have been adversely affected by the novel virus: 

Tourism

The travel sector is most directly affected by China's decision to quarantine dozens of cities and ban overseas tour groups, in a bid to contain the outbreak. Other countries have told their nationals to avoid travel to China and banned arrivals from there. 

Many airlines are trimming their schedules. Air Canada, Air France, British Airways, Delta and Lufthansa are among leading carriers that have cancelled all their flights to China. 
 

(Photograph:AFP)

Electronics

Taiwanese tech giant Foxconn is keeping its Chinese factories closed until mid-February and telling some staff to stay away for another 14 days, the incubation period of the virus.

That could affect global supply chains for tech companies that rely on Foxconn to assemble everything from Apple's iPhones to flat-screen TVs and laptops.
 

(Photograph:AFP)

Automobile

Wuhan, the central Chinese city that is ground zero of the outbreak, is a hub for foreign carmakers from the United States, Europe, Japan and South Korea.

The extended holidays have limited the immediate impact on their production in Wuhan itself, but concerns are growing about spillover effects, including on auto suppliers around China.

Hyundai Motor says it is suspending all production in South Korea because of a lack of parts from China.

Electric car pioneer Tesla says the virus could delay a planned acceleration of production at its giant new factory in Shanghai, and potentially affect earnings this quarter.
 

(Photograph:AFP)

Food and beverage

Mainland China is the second-biggest market of US coffee chain Starbucks, with more than 4,000 outlets. Half of them have been closed by the outbreak.

Fast-food giant McDonald's has closed all of its "several hundred" restaurants in Hubei, the province of Wuhan, but some 3,000 others in China remain open.

Pizza Hut and KFC are also suffering closures in Hubei province imposed by their Chinese parent company, Yum China.

(Photograph:Reuters)

Miscellaneous

Nike warned of a "material impact" on operations in mainland China, Hong Kong and Taiwan. The sports apparel and footwear giant has closed about half its stores in China and experienced a drop in retail traffic at those still open.

European plane maker Airbus has halted production from its plant at Tianjin, east of Beijing. Likewise for French group Safran, which makes helicopter engines and airplane components out of Tianjin and other plants in China.

Heavy-equipment maker Caterpillar, which has already suffered from the Sino-US trade war, warned of "continued global economic uncertainty" this year.

 

(Photograph:Reuters)