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Starbucks closes 2,000 Chinese branches

Starbucks closes 2,000 Chinese branches

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Starbucks has closed half of its outlets in China to protect its staff and support government efforts to contain the coronavirus.

The coffee shop chain warned that the rapidly expanding infection is likely to affect its financial performance. Starbucks has almost 4,300 outlets in China, making it the company’s largest market outside the US.

Will coronavirus affect China’s economy?

The impact of coronavirus outbreak is already being felt across the globe in stock exchanges. China’s Shenzhen and Shanghai composite stock market indexes fell 3.52 per cent and 2.75 per cent respectively before closing for the Lunar New Year break. The break has been extended till the next Monday in an attempt to wrest the negative sentiments on the markets.
The full impact of Wuhan virus on China’s and the global economy will be known only after the coronavirus spread has been contained fully and normal business restored. But early estimates say the coronavirus outbreak may cost China’s economic growth by 0.5 per cent to 1 per cent. At 1 per cent, loss to Chinese economy will be over $136 billion.

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