The virus will definitely slow China's economic growth this year, Georgieva said, just how much depends on how well world leaders can contain the fast-spreading outbreak.
IMF head Kristalina Georgieva said the COVID-19 outbreak is the "most pressing uncertainty" for the global economy right now.
Georgieva warns that a long-lasting outbreak would have substantial consequences for China and the world economies. The international health emergency "we did not anticipate in January" now threatens to derail global economic growth that was already under pressure from a global trade war and Brexit, she said Wednesday"It is a stark reminder of how a fragile recovery could be threatened by unforeseen events," she added.
"If the disruptions from the virus end quickly, we expect the Chinese economy to bounce back soon," she wrote, adding that China's GDP growth would sharply drop in the first quart of 2020, it would be a minor hit on the year. "Spillovers to other countries would remain relatively minor and short-lived, mostly through temporary supply chain disruptions, tourism, and travel restrictions.
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