- Position‹3 of 4›
- The economic impacts of the coronavirus are short-term
- Argument
The virus 'shocked' markets, but this will stabilise
Historically, unforeseen circumstances have a negative impact on the economy. Yet as recent examples, such as Brexit, have evidenced - these are rarely long-lasting.
The argument
The Chinese economy has measures in place to deal with crises like coronavirus. The Chinese central bank has already began to loosen monetary policy to shield the economy. Additionally, there is precedent for China being able to whether a storm like coronavirus. During the SARS crisis in 2003, the Chinese economy took a huge hit. However, the economy stablised during the following quarter and the negative impact was offset by economic growth. Ultimately, concerns about a global economy collapse are an overreaction. The Chinese economy has measures to absorb the economic shock. Coronavirus certainly has the capacity to negatively effect the markets, but any negative impact will be counteracted over time.
Premises
Counter-arguments
The coronavirus epidemic is already much worse than SARS. Roughly ten times the amount of people have been infected and more than 150 million people are on lockdown. This is no simple shock - it is a serious crisis that will impact the global economy for a long time.