The cost of coronavirus
The coronavirus isn’t just costing lives: it’s also costing livelihoods. As the death toll rises around the world and the disease spreads, it could cost the global economy millions in lost income, stock-market drops, tourism dollars and more. It will also have some surprising repercussions in seemingly unrelated industries, including the major way it’s already affecting construction. Here’s what this virus is doing to us financially – and has the potential to do if the crisis worsens.
The Chinese economy is virtually paralysed
This will have a deep and profound effect on the global economy, says professor of economics, Dr Tenpao Lee. “With our global economy, and the fact that China makes up about 16 per cent of that, the economic ripple effects will be felt around the world,” Lee explains. “The global supply network has been broken, and a significant portion of the global economy is halting.” Lee believes that global recession – affecting developed and developing countries – is inevitable in the first two quarters of 2020.
Global equity markets lost trillions in value during the week of February 24, says Andrew Schrage, CEO and co-founder of Money Crashers. “Much of that value will return as the initial panic subsides and central banks take emergency action to assuage investors’ fears, but that’s not much comfort for weak-kneed investors gaping at their shrunken superannuation funds,” he says.