Analysts: Quake's economic impact will likely be 'limited'
14 May 2008
The economic aftereffects of the earthquake that struck near Chengdu, Sichuan province on Monday will likely be "limited," AP reported, citing experts. The Shanghai Composite Index fell 1.8% on Tuesday, a drop partially attributed to fears that the disaster would disrupt supplies around Chengdu as Cyclone Nargis has done in Myanmar. Sixty-six Sichuan- and Chongqing-based companies have suspended trading on mainland stock exchanges. However, the quake, which registered 7.9 on the Richter scale and has caused more than 13,000 deaths so far, was "confined to one area" and lasted "a very brief time" unlike the severe winter storms in February that have had a lasting impact on inflation, said Feng Yuming, an analyst at Oriental Securities in Shanghai. Roads, power supplies and communication links to the area have been disrupted, and the government has suspended operations at damaged coal mines, factories, gas wells and chemical plants until safety inspections can be conducted.
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