The recent outbreak of the Coronavirus originating in Wuhan has resulted in the loss of lives of more than 20 individuals.

The World Health Organization (WHO) has designated the virus as a crisis for China but not a global emergency. Nonetheless, outbreaks like this often lead to economic repercussions. The crucial question presently is the extent of the virus’s reach and the number of people it will affect.

China has already started to feel the economic repercussions of the new virus. The Lunar New Year typically witnesses countless Chinese people traveling both within the country and overseas. Due to the coronavirus outbreak, several major cities in China have been brought to a standstill. Among all the travel limitations, the shutdown of Wuhan, a city with a population equivalent to that of London, stands out as particularly significant. The tourism sector has been hit first and foremost. Additionally, expenditures on entertainment and gifts have also taken a hit, as many are hesitant to venture outside and join in the festivities.

Wuhan serves as a crucial transport hub in southern China, with trains and parcel deliveries being severely impacted. Furthermore, disruptions have occurred in the industrial supply chain, potentially leading to price increases in some goods.

Looking back at the global experience with the Severe Acute Respiratory Syndrome (SARS) outbreak offers insights into the potential impact of such a virus. SARS, another lethal coronavirus that originated in southern China, spread to other parts of the world, claiming the lives of hundreds in China and beyond.