World Economy, Coronavirus, China, Financial Markets

World Economy, Coronavirus

Will coronavirus impact the global economy?

The 360 | Will the coronavirus infect the global economy?

15.2.2020

The 360 | Will the coronavirus infect the global economy?

The coronavirus that has caused more than 1,300 deaths in China is also dragging the country's economy to a crawl. Will the impact spread to the rest of the world?

“The 360” shows you diverse perspectives on the day’s top stories. What’s happening For the past several weeks, leaders around the world have worked to stifle the spread of the coronavirus that has sickened 60,000 people and led to more than 1,300 deaths. While the primary focus has been on the health risks of the virus — which can cause severe respiratory illness known as COVID-19 — experts have begun to worry about the negative impact that a prolonged outbreak could have on the world economy. “We are closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy,” the chairman of the U.S. Federal Reserve said Tuesday. The epidemic is caused by a virus similar to the one behind SARS, which killed 774 people in 2002 and 2003. SARS also slowed China’s economic growth and caused an estimated $40 billion in losses worldwide. The current outbreak has disrupted a number of industries over the past few weeks as factories have shut, travel has been restricted and uncertainty has dampened financial markets. Why there’s debate Many analysts fear that the coronavirus could be much more damaging than SARS, in large part because of China's rising role in the world economy in the past two decades. In 2003, China represented roughly 4 percent of the global economy. In 2018, its share had grown to about 16 percent. Businesses have also become much more integrated across borders, and China serves as a major manufacturer in supply chains across countless industries. If factories are shut for an extended period of time, the global trade market could be disrupted. Some economists fear the virus could push China into a recession large enough to cause a global downturn. Other predictions are much less apocalyptic. The ultimate impact of the virus will depend on how long the epidemic lasts and whether it spreads to other countries in significant numbers. If the outbreak is contained effectively, the effects could be limited to a marginal dip in China’s growth that represents a small blip in the world economy. Story continuesSome economists caution against making any forecasts at all, given the uniqueness of the outbreak, the lack of information from China’s authoritarian government and the general unpredictability of the world economy. “Everyone is guessing,” one economist said. What’s next Millions of Chinese workers returned to work this week after the extended Lunar New Year holiday, but travel restrictions put in place to combat the virus have forced many factories to remain closed. The effectiveness of China’s efforts to reopen its factories is expected to play a major role on how severe the economic impact of this coronavirus outbreak will be. PerspectivesToo much is unknown to make any solid predictions “There is so much unknown about the virus and its potential that the numbers can only be educated guesses.” — Don Pittis, CBC The effects are already being felt “The knock-on effects of the virus and China’s dramatic response are daily making themselves felt, from disrupted air travel to rattled supply chains and plummeting commodity prices that are dampening growth prospects from Southeast Asia to South America and beyond.” — Keith Johnson and James Palmer, Foreign Policy The impact will be minor if the virus is contained “Economists say the current level of disruption is manageable. If the number of new coronavirus cases begins to slow, and China's factories reopen soon, the result will be a fleeting hit to the Chinese economy in the first quarter and a dent in global growth. If the virus continues to spread, however, the economic damage will increase rapidly.” — Charles Riley and Julia Horowitz, CNN The outbreak could have a lasting impact on China’s viability in global trade “The greatest cost will come to China’s reputation as a reliable trade partner. … China creates the impression that it has learned little since the SARS crisis, giving the rest of the world reason to try to reduce its dependence on China for growth and production.” — Ian Bremmer, Time The virus is stunting recovery from the U.S.-China trade war “[Harm from the virus] is all too apparent to exporters and manufacturers that suffered from the U.S. trade war with China. They were hoping the recently signed first stage of a trade deal between the two countries would pave the way for improved sales in 2020, but those dreams are now threatened.” — Jeffry Bartash, Marketwatch Unless panic sets in, the financial markets can withstand the impact “The level of global anxiety and the impact of the ‘fear factor’ in markets is probably what we should worry most about.” — Economist Torsten Slok to Bloomberg Is there a topic you’d like to see covered in “The 360”? Send your suggestions to the360@yahoonews.com. Read more “360”sPhoto illustration: Yahoo News; photos: AP, Getty Images Read more: Yahoo News

Bank of Japan official warns of coronavirus impact on Japan's economyThe Bank of Japan expects the country's economy to continue expanding moder... When was the new stress test due? JohnWayneName 3 economy now FujiwaraCarol

IMF chief hopes for global policy response to mitigate coronavirus impactThe International Monetary Fund hopes governments and central banks will work on... If every country does they’re own accounting 🧾 and creates its own policy things would be much simpler 💵 We are Providing New Offer for This February Business Card Design Start at 15$ with some extra features also Branding and Promotional Design - Single or Double Sided Business Card - Print Ready with Bleed - Source File - Unlimited Revisions - Suitable Design Inbox me for Design No worries, the planet is already in the autoclave 🔥 🌍🔥

China's Xi pledges to minimise impact of virus China will definitely be able to minimise the impact of the coronavirus outbreak... Sounds scarier when it comes from the leader of the CCP. I mean, historically they are really good at killing their own people. He thinks he can bully virus too? Chinese say: better never than late?

GS: Coronavirus to hit GDP this quarter 10 times harder than a hurricane - Business InsiderGOLDMAN SACHS: Coronavirus will hit global growth 10 times harder than a major US hurricane — but only in the short term o ffs.

This European company isn’t sugarcoating its coronavirus problemThe maker of Absolut vodka isn't sugarcoating its coronavirus problem. The company cut its annual profit growth outlook as it said China ’s coronavirus epidemic was likely to have a “severe” impact on its third-quarter performance. Bullish I was wondering who drank that crap. The Chinese! Probably made there too with the best quality ingredients! 😂 But vodka prevents getting infected by viruses and bacterium 🧐🤔 I speak from experience!

Chinese economy clobbered by coronavirus but set to recover soon: Reuters pollThe coronavirus-hit Chinese economy will grow at its slowest rate since the fina... Surrreeeeee it is propaganda......they will lose 30-40 % of there orders. Oh great. Set to recover soon! With zero data to support that claim. Love it.



Brazilian Who Visited Italy Is First Coronavirus Patient in Latin America

Bruno Mars Thanks BTS For Covering 'Drippin in Finesse' on 'Carpool Karaoke'

'Carpool Karaoke': BTS Sing 'On,' James Corden Asks to Join Band

Trump announces news conference on coronavirus with CDC after days of mixed messages

BTS' Carpool Karaoke: Watch

BTS 'Carpool Karaoke' just dropped and it's every bit as glorious as we'd hoped

As coronavirus looms over Olympics, Japan PM urges two-week curbs on sports events

Write Comment

Thank you for your comment.
Please try again later.

Latest News

News

14 February 2020, Friday News

Previous news

Trump budget zeroes out funding for Stars and Stripes, the military's newspaper

Next news

Kansas leader decries attempts to tie abortion, Medicaid
'To Kill a Mockingbird' performed free for students at Madison Square Garden ABC News @ABC Coronavirus live updates: 2 Caribbean islands turn cruise ship away Greece confirms first coronavirus case, a woman back from Milan A Mini-Mississippi River May Help Save Louisiana’s Vanishing Coast Should Robots Have a Face? Court Rules Trump Administration Can Withhold Funds From Sanctuary States, New York City White Supremacist Harassed Journalists and Cabinet Official, F.B.I. Says Clive Cussler, million-selling adventure writer, dies at 88 Dems delay FISA update bill after Lofgren pushes for changes A record high: 1 in 10 eligible American voters are immigrants Ex-Amazon manager says she had to scour applicants' social media for race, gender
Brazilian Who Visited Italy Is First Coronavirus Patient in Latin America Bruno Mars Thanks BTS For Covering 'Drippin in Finesse' on 'Carpool Karaoke' 'Carpool Karaoke': BTS Sing 'On,' James Corden Asks to Join Band Trump announces news conference on coronavirus with CDC after days of mixed messages BTS' Carpool Karaoke: Watch BTS 'Carpool Karaoke' just dropped and it's every bit as glorious as we'd hoped As coronavirus looms over Olympics, Japan PM urges two-week curbs on sports events Mike Pence Clearly Went To Ash Wednesday Services Dozens Of Times Steven Spielberg Won’t Direct ‘Indiana Jones 5,’ James Mangold in Talks to Replace (EXCLUSIVE) Handwritten Sign Clarifies Flooded Urinal Covered In Garbage Bag ‘Out Of Order’ Maria Sharapova Wants to Be Clear: She Is Retiring From Tennis, Not Quitting If you drive an expensive car you're probably a jerk, scientists say