Moody’s Points Global Economic Consequences from Coronavirus
"The fear of contagion could dampen consumer demand, and affect tourism, travel, trade and services in affected countries," said Atsi Sheth, MD for Credit Strategy at Moody's Investors Service.
Moody’s Investors Service (MIS) said on Wednesday that impact of coronavirus outbreak in China can have economic consequences as the SARS epidemic of 2003 demonstrated.
“The fear of contagion could dampen consumer demand, and affect tourism, travel, trade and services in affected countries,” said Atsi Sheth, MD for Credit Strategy at Moody’s Investors Service.
“The burden on healthcare sectors in affected countries will also potentially increase,” he said in a statement.
The foremost risk around the coronavirus infections in and outside China is human health-related, and borne by those exposed to infection, said Sheth.
“Should the incidence of infections escalate, it could also have economic consequences as the SARS epidemic of 2003 demonstrated.”
The pneumonia of unknown cause was first reported in the WHO Disease Outbreak News on January 5. By January 12, the outbreak was confirmed.
On Tuesday, SBI’s research team Ecowrap also said the impact of coronavirus outbreak will be severe as Wuhan is the hub of transport and industry.
While the total cost of SARS outbreak in 2003 at current prices is about 57 billion dollars, epidemiology models suggest the current disease is in the ascending phase.
“With a sudden shift in expenditure priority, the growth will be affected in China and globally,” said Ecowrap.