Why the coronavirus ‘poses a more significant threat’ to markets, economy than past epidemics

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Why the coronavirus ‘poses a more significant threat’ to markets, economy than past epidemics
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“Given the size and importance of China’s economy, the impact on the global economy is likely to be more significant than in previous epidemics (including SARS),” one economist wrote.

Investors who play down the impact of the coronavirus outbreak may do so at their own peril, one economist argued in a Monday note to clients.

Meanwhile, China’s more aggressive response today vis-a-vis the SARS outbreak will make its economic impact greater in China and abroad. “The steps to contain the virus – rather than the virus itself – are causing most of the economic damage,” he added.

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