newstodate.aero
MAY 22,2003 (newstodate): While not downplaying the current seriousness of the outbreak of SARS, Lufthansa Cargo still sees the long term effect on the Chinese market to be limited.
-Because of the SARS, we expect the GDP growth in China to be one or two percent lower than planned, Hong Kong will probably be pushed into a recession, and its service sector which accounts for large part of the areas economy, will be deeply affected, but Chinas manufacturing industry will hardly feel more than a ripple effect, says Frank Naeve, Lufthansa Cargo general manager sales in China.
Naeve says Chinas import would probably be more affected than its exports due to a temporary reduction in consumer spending. At the same time effects on exports will hit the textile industry mainly, but given the seasonal character of this industry, this is not a major problem right now.
Chinas exports of high-tech goods, which is is increasing proportionately, will be less affected, and Chinas long/term advantages for sourcing will remain unaffected, Naeve says.
Naeve also says Lufthansa Cargo has decided to add freighter capacity into China to compensate for the reduced belly hold capacity by Lufthansas passenger flights into China.
-Because of the SARS, we expect the GDP growth in China to be one or two percent lower than planned, Hong Kong will probably be pushed into a recession, and its service sector which accounts for large part of the areas economy, will be deeply affected, but Chinas manufacturing industry will hardly feel more than a ripple effect, says Frank Naeve, Lufthansa Cargo general manager sales in China.
Naeve says Chinas import would probably be more affected than its exports due to a temporary reduction in consumer spending. At the same time effects on exports will hit the textile industry mainly, but given the seasonal character of this industry, this is not a major problem right now.
Chinas exports of high-tech goods, which is is increasing proportionately, will be less affected, and Chinas long/term advantages for sourcing will remain unaffected, Naeve says.
Naeve also says Lufthansa Cargo has decided to add freighter capacity into China to compensate for the reduced belly hold capacity by Lufthansas passenger flights into China.