ASIAN Economies Ex China to gain from Wuhan Corona Virus Crisis - a new report by MOODY's

According to "Psychology Today" it takes about 66 days of continuous change for consumer behaviour to permanently shift. If that is indeed the case then we are in for a "big shift" as the Wuhan Corona Virus crisis continues way past 6 months since its origin in China. 

The pandemic has now reached every community in the world. The United Nations has described it as the biggest crisis on the planet since World War II.

Most of us are undergoing a strong disruption in our social and work lives. The world is collectively trying to understand what happens next. 

Given the degree of uncertainty which is there in the immediate future the following areas are likely to see a more fundamental shift because of the Wuhan Corona Virus crisis - some of which may even take 3-4 years.

1. Low growth environment 
2. Fragmentation of Global Trade 
3. Shift online - large parts of economic activity 
4. Perhaps the role of governments in societies is likely to increase 

As there is a shift in supply chains across the globe, Asian countries like India, Indonesia and Combodia which have a favourable trade agreement with USA and Europe are likely to gain according to a report released by Global Rating Agency Moody's.

The report further states that " The Asian Countries that stand to benefit from diversification are those with sound economic fundamentals, reliable infrastructure, sufficient human capital stock and low geographical and supply risk. 

On the other hand production in sectors such as pharmaceuticals and medical devices is likely to be localised closer to home markets which would acutely impact China. 

 

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