How will the coronavirus pandemic affect the global economy? The virus is fast spreading across continents, causing major corporations to close their offices and airlines to go bust. Coronavirus has already been blamed for the record-breaking one day fall in the US economy. What's next?
The coronavirus is bringing down ill-prepared national economiesShow moreShow less
Think global, act local. Coronavirus might be colonising every corner of the globe, but its economic impact is limited to a select few nations.
The Chinese economy has been significantly affected thus far from the coronavirus outbreak. The virus has significantly slowed economic growth in the country, and production has come to a standstill with factories remaining on lockdown. Small and medium businesses, in particular, are feeling significant impact from coronavirus as people remain indoors rather than going to restaurants or shops.
However, it is unlikely that this impact will spread far beyond China. A slowdown of growth in China is generally expected to be roughly a fifth as serious elsewhere. Other economies can look to the crisis unfolding in China and use internal safeguards to guard their economies from feeling a similar impact, halting coronavirus from causing a full global economic meltdown.
It is too late for other countries to safeguard against the economic turmoil that has hit China - the impact has already been felt significantly in other economies. Coronavirus has cause significant upheaval to stock markets globally.
[P1] The Chinese economy has been significantly affected by coronavirus as it is the epicentre of the crisis.
[P2] Countries that are less affected by the disease and are feeling less impact can prepare their economies as the disease spreads.
Rejecting the premises
[Rejecting P2] Other economies don't have time to prepare themselves - the economic impact is already on their doorstep.