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Worst China floods may deal blow to economy
[BEIJING] China's worst flooding since 1998 may be another drag on third-quarter economic growth with work at factories and offices disrupted in the southeastern regions that contribute about a fifth of gross domestic product, Australia & New Zealand Banking Group Ltd said.
"The heavy rainfalls at present pose downside risks," Raymond Yeung, an economist at ANZ Bank in Hong Kong, wrote in a report on Friday. "We expect some negative impact on Q3 GDP growth unless the government launches stimulus measures to offset the impact."
The extreme weather has affected two of China's most industrialized provinces, Jiangsu and Hubei provinces, and has already taken a toll on some smartphone producers, according to a report by China Daily. Economic losses have already climbed to US$5.7 billion, according to a statement this week from the Civil Affairs Ministry.
More disruptions and losses are likely in store soon. Typhoon Nepartak, which lashed Taiwan on Friday, is forecast to continue moving west and making landfall in southeastern China's Fujian province Saturday, according to the nation's meteorological administration.