AKIPRESS.COM - Large parts of China were reeling on Friday from the worst floods in decades, as disruption mounted for supply chains, including for personal protective equipment (PPE), vital in the fight against the novel coronavirus, Reuters reported.
The central city of Wuhan and the provinces of Anhui, Jiangxi and Zhejiang declared red alerts as heavy rain swelled rivers and lakes.
Wuhan, on the banks of the Yangtze river where the novel coronavirus emerged late last year, warned residents to take precautions as water levels fast approached their maximum guaranteed safety level.
The summer rainy season brings floods to China almost every year but the impact of the disruption they cause is being felt further afield as Chinese goods become more important in global supply chains for various items, including PPE.
Economic activity in other parts of China, especially construction and steel and cement demand, has also been hurt by the flooding, analysts say, suggesting some loss of momentum after a stronger than expected bounce in the second quarter from the coronavirus crisis.
“We estimate recent floods in Yangtze River regions could lead to a gross drag of 0.4-0.8 percentage points on third-quarter GDP growth,” analysts at Morgan Stanley said in a note to clients on Friday.