The virus has emerged as a major risk to the global economy, still reeling from the impact of US-China trade war. Some of the biggest companies, including iPhone-maker Apple, are bracing for supply-chain disruptions.
Image: picture-alliance/AP Photo/V. Yu
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The rapidly spreading coronavirus outbreak in China continues to rattle global markets as investors and policymakers assess the risks posed by the SARS-like virus to the global economy
"Markets will remain highly volatile as long as they feel that they only have an incomplete picture of what is going on, and what is going to happen next," said Agathe Demarais, global forecasting director at the Economist Intelligence Unit.
China — the world's second largest economy — is called the world's factory and plays a key role in global supply chains. Experts say it is this huge presence of China in the world economy that must be considered while assessing the impact that the virus outbreak could have on the global economy.
"China's economy is very important in the global economy now, and when China's economy slows down we do feel that — not as much though as countries that are near China, or that trade more actively with China, like some of the Western European countries," US Federal Reserve Chair Jerome Powell said.
Zhang Ming, an economist at the Chinese Academy of Social Sciences, projected the outbreak would cut China's first-quarter growth by one percentage point to 5% or lower.
Top companies brace for disruptions
The outbreak has caused limited supply chain disruptions so far because many facilities were already closed for the Chinese New Year holidays, but there are growing concerns that the factories may remain shut for longer than usual. Also fueling concern over the damage to productivity, thousands of factory workers on holidays may struggle to get back to work next week, due to travel restrictions.
The epidemic has been one of the major talking points during companies' earnings calls this week. In the US alone, the word "virus" or "coronavirus" was mentioned by 27 different companies, including iPhone maker Apple, Starbucks and McDonald's, a CNBC analysis showed.
Apple, which posted record earnings on Tuesday, provided a wider-than-usual guidance for the ongoing quarter in view of the uncertainty around the impact of the virus. Virtually all iPhones, Apple's top money-spinner, are made in China.
Tesla expects a delay in production ramp-up at its newly opened plant in Shanghai. German auto-parts maker Robert Bosch said it was monitoring the situation to assess if there would be any delays in restarting production at its two Wuhan facilities, which are closed for the Lunar New Year.
Japan's Toyota has also halted production in China through February 9. McDonalds and Starbucks have shuttered hundreds of stores in the country. Swedish furniture retailer Ikea said it will close all its 30 Chinese stores "until further notice," in response to the outbreak.
"Apart from the risk to human lives, it is likely to hit travel and consumption activities. In a scenario of widespread infection, it could materially weaken economic growth and fiscal positions of governments in Asia," S&P said.
The global cost from SARS was estimated at $33 billion, or 0.1% of world GDP in 2003.
Many say the impact of the current virus outbreak on global growth could be bigger this time as China now accounts for a larger share of the world economy.
ap/uhe (Reuters, AFP)
Coronavirus: Timeline of the global spread of COVID-19
Since the first cases were confirmed in December 2019, the flu-like COVID-19 virus exploded into a global pandemic, killing tens of thousands of people and infecting around 800,000. Scientists scramble for a vaccine.
Image: picture-alliance/dpa/SOPA Images/A. Marzo
Pneumonia-like virus hits Wuhan
On December 31, 2019, China notifies the World Health Organization of a string of respiratory infections in the city of Wuhan, home to some 11 million people. The root virus is unknown and disease experts around the world begin working to identify it. The strain is traced to a seafood market in the city, which is quickly shut down. Some 40 people are initially reported to be infected.
Image: Imago Images/UPI Photo/S. Shaver
First death in China
On January 11, China announces the first death from the coronavirus — a 61-year-old man, who had shopped at the Wuhan market, dies from complications with pneumonia. Like SARS and the common cold, scientists identified that the new virus is in the coronavirus family. It is temporarily named 2019-nCoV. Symptoms include fever, coughing, difficulty breathing, and pneumonia.
Image: Reuters/Str
Virus reaches neighboring countries
In the following days, countries such as Thailand and Japan begin to report cases of infections in people who had visited the same Wuhan market. In China, a second fatality is confirmed in the city. By January 20, three people have died in China and more than 200 are infected.
Image: Reuters/Kim Kyung-Hoon
Millions under lockdown
China places Wuhan on quarantine on January 23 in an attempt to limit the spread of the virus. Transportation is suspended and workers attempt to quickly build a new hospital to treat infected patients, which total over 830 by January 24, as the death toll climbs to 26. Officials eventually extend the lockdown to 13 other cities, affecting at least 36 million people.
Image: AFP/STR
A global health emergency?
More and more cases are confirmed outside of China, including in South Korea, the US, Nepal, Thailand, Hong Kong, Singapore, Malaysia and Taiwan. As the number of infections rises, the World Health Organization on January 23 determines that it's "too early" to declare a global public health emergency.
Image: Getty Images/X. Chu
Coronavirus reaches Europe
On January 24, French authorities confirm three cases of the new coronavirus within its borders, marking the disease's first appearance in Europe. Hours later, Australia confirms four people have been infected with the respiratory virus.
Image: picture-alliance/dpa/S. Mortagne
First cases confirmed in Germany
On January 27, Germany announces its first known case of the virus — a 33-year-old in Bavaria who contracted it during a workplace training with a visiting Chinese colleague. He is put under quarantine and observation at a Munich hospital. The following day, three of his colleagues are confirmed infected. The death toll in China reaches 132, with around 6,000 infected worldwide.
Image: Reuters/A. Uyanik
WHO declares global health emergency
On January 30, the UN's World Health Organization (WHO) declares coronavirus a public health emergency of international concern in a bid to protect countries with "weaker health systems." However, WHO Secretary-General Tedros Adhanom Ghebreyesus does not recommend trade and travel restrictions, saying these would be "an unnecessary disruption."
Image: picture-alliance/KEYSTONE/J.-C. Bott
First death outside China
The first death linked to the novel coronavirus outside of China is reported in the Philippines on February 2. A 44-year-old Chinese man had traveled from Wuhan to Manila before falling ill and being taken to hospital, where he later died of pneumonia.
Image: Getty Images/AFP/T. Aljibe
Bad ending to a cruise
Also on February 3, the cruise ship Diamond Princess is quarantined off Yokohama in Japan after cases of the new coronavirus were found on board. As of February 17, the number of people infected has grown to more than 450, the largest cluster of cases outside of China. Several of the 3,700 passengers and crew onboard the ship are being or have been flown back to their home countries.
Image: picture-alliance/dpa/kyodo
Italy under quarantine
Cases in Italy rise dramatically, with 77 deaths and thousands of confirmed cases by March 3. Many countries instigate travel restrictions to northern Italy and tourist numbers plummet. On March 8, the Italian government put the entire Lombardy region into quarantine, affecting 16 million people. March 10 sees 168 fatalities in Italy, the highest in a single day.
Image: Reuters/R. Casilli
Economic woes
European and US stock markets slump on March 6, leading to the worst week since the 2008 financial crisis. The effect on global business has been significant, with many companies reporting losses and the tourism industry and airlines badly hit. The EU pledge €7.5 billion ($8.4 billion) on March 10 in an investment fund to try to stop the Eurozone falling into a recession.
Image: picture-alliance/Jiji Press/M. Taguchi
WHO declares outbreak as pandemic
As worldwide cases top 127,000 and deaths pass 4,700, the World Health Organization designates the global outbreak as a "pandemic" on March 11. US President Donald Trump announces a travel restriction on people coming from the Schengen Zone in Europe, annoying the EU. German Chancellor Angela Merkel announces that in Germany, 70% of the population could get the virus.
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Public life on hold in Europe
On March 14, Spain joins Italy in imposing a near-total nationwide lockdown to prevent the virus spreading. The population of 46 million is told not to leave their homes unless for essential tasks. In France, cafés, restaurants and non-essential shops are closed as of March 15. Many public events in Germany are cancelled and schools close.
Image: picture-alliance/dpa/AAB. Akbulut
International travel severely restricted
As of March 15, many countries impose strict travel bans or restrictions in an attempt to stop the spread of Covid-19. For example, New Zealand and Australia require all international passengers to self-isolate for 14 days after arrival in the country. The US extends a European travel ban to include the United Kingdom and Ireland.
Image: picture-alliance/Photoshot
Germany imposes partial lockdown
In a landmark televised address German Chancellor Angela Merkel announces far-reaching restrictions on everyday life on March 22, banning meetings between more than two people not from the same household outside of the workplace. The country has a surprisingly low death rate, a phenomenon attributed to a high level of testing, and a high number of intensive care beds.
Image: picture-alliance/EibnerT. Hahn
Virus strikes at top as UK locks down
On March 23rd Britain becomes the latest country to impose restrictions on personal freedoms, with people only allowed to leave their homes in a limited number of circumstances. Prime Minister Boris Johnson is diagnosed with the viruson March 27, as well as heir to the throne Prince Charles on March 25. Meanwhile, there are complaints that not everyone is taking social distancing seriously.
Image: picture-alliance/R. Pinney
Grim milestone for the US
On March 27 the US overtakes China in terms of the number of people infected, making it the country with the most cases of COVID-19. This came as President Donald Trump claimed that the nation would get back to work "pretty quickly." At the same time, it emerged that more than 3 million Americans had lost their jobs due to the pandemic. New York is worst-hit, with a hospital ship sent to help out.
Image: picture-alliance/Photoshot/J. Fischer
Spain's surging death toll
Spain also overtakes China in the number of COVID-19 cases on March 30, as the government toughens the severity of its lockdown. All non-essential activities are halted. Only Italy has a higher death toll than Spain. Most affected is the capital, Madrid. With funeral services overwhelmed, officials turn the Palacio de Hielo ice skating rink into a temporary morgue.
Image: picture-alliance/Geisler-Fotopress
More than a million
On April 2nd the Johns Hopkins University announced on Thursday that there were more than a million confirmed coronavirus cases around the world. The US is the most affected with three times the number than China, where the virus emerged in December. Over 50.000 people have died — and the outlook remains grim.
Image: Reuters/J. Redmond
UK PM Boris Johnson hospitalized
The 55-year-old was admitted to the intensive care unit at London's St Thomas hospital on Monday evening (6.4.) and was given oxygen treatment after his condition worsened. He had been diagnosed with COVID-19 on March 27.
