page_title: 2008 Chinese winter storms
section_title: Economic impact and costs
hierarchical_section_title: 2008 Chinese winter storms / Effects / Economic impact and costs
caption_attribution_description: ZhongShan North Road at Nanjing, after storm, 2008
context_page_description: The 2008 Chinese winter storms were a series of winter storm events that affected large portions of southern and central China, where usually do not snow severely or extensively, starting on 25 January 2008 until 6 February 2008. The systems affected most of the area with heavy snows, ice and cold temperatures causing extensive damage and transportation disruption for several thousand travelers. It became China's worst winter weather in half a century. According to some media sources the storms were directly responsible for at least 129 deaths.
context_section_description: The Chinese economy, which has experienced rapid growth over the past thirty years, was also affected by the winter event. According to the BBC, the country's civil affairs ministry estimated that the costs to the country's economy were about 54 billion Chinese yuan but the cost rose to 80 billion yuan as of February 7. Damage estimates as of February 13 were at about 111 billion yuan. Insurance companies across the country received tens of thousands of compensation cases including half a million from the hardest hit regions.
  Analysts also mentioned that extensive loss of crops (of over 40,000 km²) including fresh vegetables and fruit resulted in a substantial inflation of food prices. At least 11 provinces reported significant price increases after the loss of millions of crops. The price for box lunches increased fivefold across many areas in the aftermath. During the month of January, the country's producer price index hit a three-year high with a rise 6.1% including a near 30% surge in crude prices, near 9% in fuel, raw materials and power prices and a 7 to 10% increase in diesel oil, kerosene and gasoline prices. In addition, food prices climbed by 10% to as much as 18% during the month and significantly affected the Consumer Price Index (CPI). The inflation rate itself reached 7.1% the highest since September 1996 where it hit 7.4%.
  In addition, productivity at numerous factories was affected. Among them, steel and aluminum production were scaled back due to a significant shortage of raw materials and loss of production of about 50,000 tonnes of lead and zinc was forecasted in Hunan. Telecom companies had significant repair costs as about 10,000 kilometers of lines were affected. The Ministry of Information Industry mentioned that this has affected 33 million users and cost at least 80 million yuan up until 27 January. Other sectors affected were hotels, airlines and auto sales while other businesses had disruption in the supply of products because of transportation delays. The Chinese government mentioned that the storm would not have a significant long-term effect on the general economy but would not be without significant short-term problems.
  The winter weather may have been responsible for a 7% drop of the Shanghai Composite Index due to concerns at the effects of transport breakdowns and power shortages. However, the storms happened at the same time as significant worldwide stock market volatility due to concerns of a recession in the United States. Energy-related stocks rose as much as 23% due to the rise of profits because of the weather woes.
caption: North Zhongshan Road, Nanjing on 28 January 2008
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