Virus Poses New Threat to Economy’s Fragile Stabilization

  • Global growth had been tipped to slowly recover this year
  • Virus will hurt Chinese consumption and spillover globally
WATCH: The fallout from the coronavirus won’t force a reaction from central banks, says UBS.Source: Bloomberg
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The outbreak of the deadly coronavirus threatens to derail a fragile stabilization in the world economy, which had appeared poised to benefit from the phase one U.S.-China trade deal, and signs of a tech turnaround.

While it’s too early to assess the full impact on China, where national holidays have been extended and the central city of Wuhan has been locked down, it’s already clear the virus is hurting consumption and tourism.