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Toyota has extended the closure of its 12 factories in China by a week.
Officials at the Beijing press conference said they had confidence in the economic system and that the impact on the economy from the outbreak would be “temporary. It will be limited and will not affect the fundamentals, and the economy is sound and stable”.
They added:
The outbreak has taken place during the spring festival and the impact on services is notable. The holiday has been extended and the construction sector and other sectors will be affected. There will be an impact on economic performance in Q1 but the economy will return to productivity when the epidemic is over. Look at 2003 Sars outbreak. There was disrupted growth in Q2 but in Q3 it rebounded. When the epidemic is controlled, the economy will rebound and pent-up investment and consumption released. The Chinese econony will have a quick recovery. it is promising and resilient. The funadmentals will not change. There is ample room for macro regulation – China is one of the few major economies that have normal monetary policy so we have sufficient tools to repsond.
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