The outbreak of coronavirus has caused the World Health Organisation to declare an international health emergency. It will probably weigh on global growth. Although the effects on the Nordics seem small, some developments should be closely watched.
- China’s Q1 GDP growth rate is estimated to be reduced by approximately 3% points due to the outbreak of the coronavirus.
- World GDP growth could be reduced by around 0.15% point for the full-year of 2020, but with only marginal effects on exports from the Nordics
- Nordic manufacturers may be hit by global supply chains problems, a risk that increases day by day and with potentially bigger impact on growth
- The impact of the virus must be more severe and prolonged for Norges Bank or the Riksbank to take action
The economic consequences of the coronavirus (2019-nCoV) outbreak cause ripple effects across the globe. The consequences will obviously be greatest in China, but the rest of the world will also be affected. This is due to China’s great and still growing importance to the world economy.