While global markets slid Friday, White House economists only see a limited economic impact from the virus on the first quarter of 2020 of about 20 basis points, or 0.2 percentage points. Publicly, White House officials have largely downplayed the potential economic impact on the United States, with White House economic adviser Larry Kudlow saying it will probably only have a “minimal” impact on the economy. Commerce Secretary Wilbur Ross, though, said the coronavirus outbreak “will help” persuade companies to move operations back to the United States and Mexico, a sentiment that other White House officials have not voiced publicly. ADADThe economic vulnerability is more acute for China, where many businesses have already closed down as consumers stay home. Combined with a downturn in sales at Boeing, Rupkey said, the virus may shave about three-quarters of a percentage point off economic growth.

Source: Washington Post February 02, 2020 10:52 UTC