According to the UBS Global Wealth Management’s, the situation in China may have “passed its worst”. Governments around the world scramble to contain the spread of the coronavirus, Kelvin Tay said.
Tay said that there is a “semblance that production capability is actually now coming back to the Chinese economy”.
According to CNBC, that will likely make the Chinese economy “the first in the world” to get back on track.
Since the coronavirus outbreak was first reported, Chinese President, Xi Jinping visited its country for the first time in December.
Iris Pang, ING’s chief economist for Greater Cina told that Xi Jinping’s visit of Wuhan is a symbolic move that shows China is recovering from coronavirus.
Since being first reported in China, the coronavirus has spread across the globe. It infected nearly 114,000 people globally. It was also taking at least 4,000 lives from World Health Organization (WHO).
Recent weeks have seen particularly severe outbreaks in countries such as Italy, one of the euro zone’s largest economies, where quarantine has been expanded to the entire country following a surge in infections and deaths.
In a bid to stem the spread of the disease, the Chinese government locked down cities. The Chinese government also quarantined millions of people.
As Beijing declared an extended Lunar New Year holiday, therefore, Beijing temporarily shut down factories and businesses.
Recent economic data have started to point to signs that the world’s second-largest economy took a hit during that period.
Tay said that 60% of China’s economy is “basically domestic consumption”.
In addition, if the production is able to bring back up to speed and consumption begins again, this will likely serve as a “buffer”