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Coronavirus and Pending Economic Impact
The coronavirus has made worldwide headlines, as the number of infections and deaths continues increasing. Aside from the terrible health toll, some are trying to figure out the economic impact of the disease.
One article in the Wall Street Journal indicated that “China’s health crisis is testing the entire global economic system . . .” even as another said that while economists can’t, as yet, understand what the actual impact will be, they can take a page from previous outbreaks. In addition to costs of caring for the ill, avoidance behavior — such as curtailing travel to areas of outbreak — will have an impact. Additionally, companies closing their offices will impact consumer demand and production.
The article suggested keeping an eye on “avoidance behavior” to determine potential economic damages. Both the 2003 SARS outbreak in Hong Kong, and outbreak of MERS in South Korea during 2015 created avoidance responses, and high economic costs.
Pictured: Shanghai travelers in a subway. Photo by Robert Wei (Shutterstock)
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- ◦Economy
