How Much Coronavirus Could Hurt GDP

(Bloomberg Businessweek) -- 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.