As the coronavirus continues to spread, we’re now being warned that the economic fallout is only just beginning.
As the world relies on China to manufacture goods, the impact has been described as the tip of the iceberg.
It’s been reported that, since the outbreak on mainland China, factories in several provinces have been shut down, transport has been heavily restricted, and ports closed.
As sea containers start to pile up, it’s estimated that the Australian economy will really start to feel the effects over the next two or three weeks.
“Factories aren’t open, supply chains aren’t open, stock holdings here in Australia will start to be depleted,” Western Roads Federation director Matt Bronickis told WAtoday.
“If containers aren’t coming in, containers don’t go to warehouses, warehouses don’t restock, they don’t send the transport out to the final destination and then the product on shelf disappears.”
Long term, like over the next 12 to 18 months, shop shelves are expected to see interruptions in supply, and subsequent higher prices.
Retail giants Kmart and Bunnings were already looking for alternative suppliers.