White House forecasts minimal impact on US economy from China’s coronavirus

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White House forecasts minimal impact on US economy from China’s coronavirus

In the wake of a growing outcry in the equity markets over demand concerns following outbreak of a fast-spreading China Wuhan coronavirus epidemic that led to the death of more than 600 souls in less than two weeks and infected thousands of Chinese nationals, White House Economic Advisor Larry Kudlow said late on Friday (February 7th) that the Administration of US President Donald Trump had not been anticipating any large-scale impacts on US economy from China’s Wuhan virus epidemic, suggesting a solacing remark which would more likely to help calm investors’ nerves over the coming week.

In point of fact, a wildlife market in Wuhan located in the Central Hubei province of China, believed to have spread the latest strain of coronavirus in to human, while as of January 23rd, shortly before the Chinese markets were set to close due to a Lunar Moon New Year holidays, total death from coronavirus was only 23, but on Friday (February 7th), more than 650 people had died of flu-like coronavirus infection and roughly 32,000 people were infected.

Amid such apocalyptic outlook in China that led to the closure of a number of shops including luxury brands from US and Europe, both equity and FX markets were outlook remained gloomier though the equity markets in Europe and the United States had still been hovering near their all-time closing highs.

Nonetheless, downplaying economic fallouts of China’s Wuhan coronavirus epidemic, White House economic adviser, Larry Kudlow said to the reporters at the White House on Sunday (February 9th), “There’s a lot of variables involved and things we don’t know.

Internally we have looked at a drop in GDP of perhaps two-tenths of 1% - that’s all we found so far. Again, based on the past and based on what we’re seeing. We think it will be an absolute minimal impact. ”