Coronavirus impact on supply chain
The effects of this viral outbreak and its impacts on the economy is being felt across the globe. A worst-case scenario is that the world economy grew by only 0.5% in 2020 and would involve a US$2 trillion hit to the global GDP. Commodity rich least developed economies will take a hit against the strong US dollar as export returns weaken. Another looming danger is that Europe may recede into a recession as the COVID-19 pandemic squeezes its economies. If European countries can’t cope, the knock-on effects will be felt in parts of Latin America as well.
Impacts on New Zealand Supply Chain
The supply chain impact can be seen in two distinct ways. Firstly, China is a massive source of raw materials, components and finished goods. Therefore without an intact supply chain, manufacturing units will be starved of input materials. Secondly, China is the largest market for goods and services. Global players rely on China as a customer. A reduced demand from China would affect supply and disrupt businesses which rely on China. Continue reading for more information on how you can reduce disruptions within your supply chain.
The following charts show the latest data as updated by Stats NZ in August. The analysis is based on New Zealand’s daily export trade data with China and the world from February. It compares the values of 2020 to 2019, to show the potential impacts of COVID-19 on New Zealand exports since its outbreak in late 2019.
New Zealand's commodity exports to the world
Compared between 2019 (February - July) and 2020 (February - July)
New Zealand's commodity exports to China
Compared between 2019 (February - July) and 2020 (February - July)
