UPS CEO says China's economy would recover sooner than expected

David Abney, Chief Executive of United Parcel Service (UPS), the world's largest delivery company, told CGTN he is bullish on China's economy when the new coronavirus (COVID-19) cases cool down and the local governments step up efforts on helping enterprises return to work.

The UPS has shipped two million face masks, 11,000 protective suits and 280,000 pairs of nitrile gloves to China to help fight against the COVID-19 epidemic. Abney told CGTN the UPS is active in the disaster relief and has already moved over 23,000 shipments with some 230 tons of medical supplies to China.

China's logistics industry has been dented during the tough period, and the UPS gets stuck as well. Abeny said the epidemic has had some impact on the delivery giant's fourth quarter results but it is too early to predict the effects on the first quarter. "We still have another five weeks to go in the quarter. So, we're watching it and we're reacting. We're able to flex our network up and down," he said.

However, Abney said the effect is starting to fade away since more people are starting to come back to work. Since February 10, most of the logistics companies have resumed their services. According to Chengdu's transport bureau, the overall recovery rate of logistics enterprises in Chengdu City has risen to 70 percent recently.

A cargo jet is parked on the tarmac at a UPS Worldport facility in Louisville, Kentucky, U.S. /VCG

"I've been impressed not only with what China has done for the economy but also with their reaction to the coronavirus (COVID-19) epidemic, making sure that they try to contain it while protecting medical workers at the same time," Abney said.

"I believe this is just another example of how China is going to step up to the challenge. And I think they will come back stronger. So, I'm really excited to see and we are prepared to add additional aircraft and additional resources when we do see that recovery, because we think it'll be a strong recovery," Abney added.

Meanwhile, International Monetary Fund's (IMF) Managing Director Kristalina Georgieva also pointed out the epidemic has limited impact and the organization expects a "V-shaped" recovery for China's economy, which means a sharp decline in economic activities followed by a rapid recovery.

Abeny also noted the epidemic will be a temporary fight, while the duration is uncertain. "But we really believe there will be a point in time where the global economy will be able to move past this. So, we look at it as shorter in duration versus longer," he said, expecting that the second half of the year would be showing growth over the 2019 level.

(CGTN)