The next two weeks will be crucial in determining the economic impact of the coronavirus, according to International Monetary Fund Managing Director Kristalina Georgieva. In an interview at the Munich Security Conference, Georgieva stated that the reopening of factories in China will provide insight into the country’s resilience and the potential spillover effects on the rest of the world.
As China continues to battle the outbreak, the country reported an additional 121 deaths and 5,090 new confirmed cases of the coronavirus. The total death toll in mainland China now stands at 1,380, with adjustments made due to double-counting in Hubei province.
Georgieva emphasized the differences between the current coronavirus outbreak and the SARS epidemic in the early 2000s, noting that China’s increased share of the global economy makes the potential spillover effects more significant. She praised China’s efforts to contain the outbreak and stimulate its economy to support affected areas.
Despite concerns about a potential German recession following stagnant fourth-quarter growth, Georgieva remains optimistic about the country’s economic prospects. She highlighted Germany’s participation in the EU’s Green Deal as a potential driver of growth and job creation. Georgieva also pointed out Germany’s strong fundamentals and innovative workforce as reasons for optimism about the country’s future.
Overall, Georgieva’s insights shed light on the global economic implications of the coronavirus outbreak and provide a glimpse into the potential paths forward for China and Germany in the face of economic challenges.