India, for example, was already showing a significant economic slowdown prior to the outbreak, i.e., slowest growth rate in 10 years. The World Bank and IMF had lowered their world growth forecasts weeks prior to the outbreak. Since the World Bank’s Q1 GDP growth forecast for the world was only 2.5% total, the UBS view implies 0% worldwide growth. In a recent discussion, Treasury Secretary Mnuchin believes the Boeing impact could cut -.50 percentage points from U.S. GDP growth. And, I suspect these impacts will reach much deeper into 2020 economic results, especially if the virus proves to have staying power.

Source: Forbes February 09, 2020 00:56 UTC