Economic impact coronavirus may not be too bad Financial

In a basic scenario, the fund assumes that the Chinese economy can still grow by 5.6 percent this year. The growth of the global economy would only be reduced by 0.1 percentage point. S&P Global recently foresaw that the pace of growth in China would fall to 5 percent, which would hit the global economy by at least 0.3 percentage point.

According to the IMF, it is obvious that the Chinese economy will pick up quickly if the spread of the virus is curbed quickly. “But we are also looking at less favorable scenarios where the global spread of the virus continues longer and the consequences for growth are greater,” Georgieva said at a summit meeting with the 20 largest economies (G20) in Saudi Arabia.

The fund recently called the virus “the most urgent uncertainty” for the global economy. In China, the second largest economy in the world, consumer spending has been under pressure lately. Temporary closures of factories also disrupt international supply chains.

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