The impact of coronavirus outbreak in China will be severe as Wuhan is the hub of transport and industry, SBI's research team Ecowrap said on Tuesday.
Although the fatality is low, the new virus has progressed at a much faster pace than the 2003 SARS case. While the total cost of the SARS outbreak in 2003 at current prices is about 57 billion dollars, epidemiology models suggest the current disease is in the ascending phase.
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"With a sudden shift in expenditure priority, the growth will be affected in China and globally," said Ecowrap.
The pneumonia of unknown cause was first reported in the WHO Disease outbreak news on January 5. By January 12, the outbreak was confirmed.
The studies on the economic impact of the SARS virus of 2003 suggest that the outbreak had impacted industries such as tourism and the retail service sector."The total cost of SARS outbreak in 2003 was 40 billion dollars which at current prices is about 57 billion dollars," said Ecowrap.
The outbreak of coronavirus comes as the United States and China signed the first economic and trade agreement by signalling the intent to end the economic and trade hostility that has marred the bilateral relationship for over two years.
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