Economic impact of coronavirus outbreak deepens

Source(s): Guardian, the (UK)
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By Richard Partington

The rising cost of the coronavirus outbreak for business and the world economy is expected to become clearer this week as major firms issue trading updates and China reports the toll on its manufacturing sector.

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The latest snapshot of industrial activity in the world’s second largest economy, due to be published this week, is expected to reveal a plunge in Chinese factory output in February as quarantine efforts to contain the disease disrupted supply chains – with damaging consequences for companies around the world.

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The head of the International Monetary Fund, Kristalina Georgieva, said on Sunday that the global lender of last resort was ready to provide additional support, particularly to poorer countries by way of grants and debt relief.

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Speaking at a G20 meeting of finance leaders and central bank chiefs, she said the IMF assumed the impact would be relatively minor and shortlived, although she warned that the continued spread of the virus could have dire consequences.

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