Coronavirus Outbreak Could Reduce China’s GDP by 1–2 Percent

A resident wears a mask to buy vegetables in the market in Wuhan, Hubei Province, China, on Jan. 23, 2020. Flights, trains, and public transport including buses, subway, and ferry services have been temporarily closed and officials have told residents to stay in town in order to help stop the outbreak of a strain of coronavirus that has killed 18 people and infected over 600 in places as far away as the United States. This week marks the start of Chinese Lunar New Year holiday, the busiest season for Chinese travelers. Getty Images

Commentary

The short-term economic effect from the rapidly spreading coronavirus that has infected thousands and killed dozens of people could reduce China’s gross domestic product (GDP) by 1 to 2 percent, if it’s similar to the 2003 SARS outbreak.