 |
|
| SARS halts expansion of China's economy |
| CCTV.COM 2003-05-02 09:05:53 |
|
After the announcement of 9.9 percent growth in GDP in the first quarter, the highest ever since 1997, comes the prediction of a downturn in the Chinese economy due to the outbreak of SARS. The World Bank has readjusted China's economic growth prediction down by 0.3 to 0.6 percent for 2003. But economists say it is difficult to make further predictions, as everything depends on how long it takes to bring the disease under control.
Usually at this time of the year, travel companies are dealing with throngs of travellers during the week－long May holiday. But here, at one of the biggest travel agencies in the country, there is almost no business due to the fears of SARS spreading. Only a few staff are on duty to try and persuade countable people who are more likely quitting their plans than inquiring about trips. The golden week used to generate some 2.5 billion US dollars worth of domestic travel in China, but not this year. The total loss on the travelling industry for the whole year is expected to be about 17.5 billion US dollars.
The initial impact has fallen heavily on the tourism, hospitality, transportation and retailing industries － and economists worry that there may be a more general impact on the economy if the disease cannot be brought under control in a short time.
However, not everything is gloomy. Here at one of the biggest car markets in Beijing, business in recent days is booming as more and more people decide to buy their own SARS－free transport.
An expatriate from New Zealand said, " I think for the high concern, it's more safe and convenient to have my own car rather than uses buses, or subways."
 The price on many models available in China has dropped over 10 percent since the beginning of the year －－ and the car market has seen a sales boom, especially for vehicles in the 10,000 to 20,000 US dollars price range.
A marketing manager of Beijing Yayuncun Car Market said, "We have seen some increase recently. For example, yesterday we sold more than 200 cars － 60 more than usual. I think it is probably because people who plan to buy cars are making quick decisions now due to the worry over SARS."
As shopping malls are deserted in the city, the online stores' revenue has surged, making up some of the loss to the retailing industry.
Fortunately, there are no signs yet that the manufacturing, agriculture and export sectors, that have a bigger share of China's economy than service industries, have felt the effects. However, economists say it is still difficult to predict longer－term effects while it remains unclear how long the disease will persist, and how long people's fear will last.
|
|
Editor: Inner Wu CCTV.com
|
|
|
|
|
|
|
