The new outbreak of the coronavirus is going to be worse than the SARS epidemic in 2003 when it comes to the impact it is going to have on the economy of the world as per the analysis of IHS Markit.
While both of these outbreaks had come out of China and had a lot of years to separate them, China has seen a growth from being an economy which was the sixth largest in 2003 to being the second largest now only behind the United States. The country has been the reason for the growth of the economy of the world overall. The IMF has estimated that China had been solely responsible for the growth of economics in the world in the last year and the contribution was 39%.
The prediction says that the Coronavirus is going to have a larger effect in terms of negativity on the economy of the world than the 2003 SARS outbreak as China as of now is commanding a market share of 16.3% of the GDP of the world therefore any slowdown in the economy is going to send huge waves all over the world economy which is going to have a huge impact overall.
SARS had affected the economy in 2003 when it had been responsible for 8,000 illnesses and had killed 800 people and shaved off around 1% of the growth as per a lot of estimates in China. The Economists say that the outbreak cost the economy close to $40 billion.
The cost of outbreak comes mostly from the sector of Travel and Tourism as per the experts and the panic that has been caused because of it.