Concerns About Impact of Coronavirus on the Global Economy

  • 2020-03-09 12:00:00
  • Reporter

As fatalities from the Coronavirus rise in China and the numbers of those infected number soar into the thousands, financial markets across the world are feeling the turbulence. The SARS epidemic in 2003 similarly impacted the global economy, affecting economic behavior and leading to a loss of GDP growth. There are fears that the Coronavirus will have a similar devastating impact, even though the death toll may not in itself be greater than that of the common, seasonal flu. The disruption in economic activity and travel could be tremendous and can have a follow-on effect. Companies with exposure to China are particularly vulnerable at this time. At the direction of the Chinese government, factories and businesses in the country are extending their Spring Festival closures. As fears of the Coronavirus rises and people stay home from work, the cancelled travel plans and reduced output will hit world economic performance significantly.

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