CHINA—The recent snowstorm across southern China has cost at least US$15 billion according to government officials.
The State Council Information Office held a press conference on February 14. Vice Minister of Civil Affairs Li Liguo indicated both the timing of this disaster, the regions involved, and its scale, have caused a major economic loss. The storms hit the mainland during Chinese New Year, the peak travel season at the most populated areas as well as at main distribution regions for transportation, electricity, coal, and many other materials.
Zhang Yuxiang, chief economist and director general of the Department of Market and Economic Information of the Ministry of Agriculture, expressed that agriculture has suffered a loss of historical proportions. The widely affected area, lengthy duration of the snowstorm, heavy snow, and the wide range of agricultural damage have all contributed to the severe loss. Current supply and demand in the marketplace will improve. However, it is not expected that large areas will be out of stock or short of supplies.
About 120 billion square meters of agricultural area are affected of which 16.8 billion square meters were completely destroyed. There are 173 billion square meters of forest damage, and 354,000 houses and buildings collapsed. The direct economic loss is US$15.5 billion. Seven southern provinces suffered the most severe damage from the snowstorm.
