(The coronavirus threatens to bring the world economy to a standstill. The fallout could include recessions in the U.S., euro area, and Japan; the slowest growth on record in China; and a total $2.7 trillion in lost output—equivalent to the gross domestic product of the U.K. That’s the most extreme of four scenarios developed by Bloomberg Economics. The outcome many had in mind a month ago—with a major outbreak confined to China and other countries suffering limited effects—is rapidly becoming too optimistic. The chances of the worst-case scenario—with all major economies suffering a significant shock—are rising by the day. The graphic below shows how they would fare under each scenario.
To contact the authors of this story: Maeva Cousin in Zurich at mcousin3@bloomberg.netJamie Rush in London at jmurray126@bloomberg.netTom Orlik in Washington at torlik4@bloomberg.net
To contact the editor responsible for this story: Cristina Lindblad at mlindblad1@bloomberg.net
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