Global economy

'There is recovery ahead'

BBC Radio 5 Live

People in China wearing masks
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Ratings agency S&P is warning that China's economic growth in 2020 to 5%, blaming the coronavirus outbreak and warning that its impact could affect the global economy.

But Monique Wong, senior portfolio manager at Coutts, doesn't think investors should be panicking just yet.

“What most investors are doing is going back to the Sars [severe acute respiratory syndrome outbreak] period in the quarter that was most effected, the Chinese economy lost 10%, but it was followed by a 15% recovery in the following quarter.

“There will be an immediate negative impact, but there is a recovery ahead and there isn’t lasting damage to the economy."

There were around 8,100 cases of Sars reported during the eight-month outbreak, and the virus was estimated to have cost the global economy more than $30bn (£22bn).

'Coronavirus can significantly affect global economy'

BBC Radio 5 Live

Oil tanker
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The world's biggest oil producers could be about to slash output as they grapple with the fallout of the coronavirus.

Representatives of oil producers' cartel Opec and its allies are expected to meet this week as calls grow for action to support oil prices.

The cost of crude has hit its lowest level in a year after falling 20% since its peak in January, as the coronavirus has an impact on the global economy.,

"What matters for investors is how long this interruption lasts," Jane Sydenham of Rathbone Investment Management tells BBC Radio Five live's Wake Up to Money programme.

"If it goes on for quite a long period of time, the scale of the reaction by China... has an impact on oil prices and general [global] growth.

"The scale is vast," she adds, saying that if disruption drags on "that will affect global growth significantly".

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a worker makes a wheel assembly

Andrew Walker

BBC World Service economics correspondent

Global economic growth is likely to be only slightly faster than the weak performance in 2019, the Bank says.

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'Bright signs' for global economy

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Bank of Japan Governor Haruhiko Kuroda said this morning that the global economy is showing bright signs.

Speaking at a year-end event for economists, Kuroda said economies in countries such as the United States and China are firm and the overall global economy is expected to be relatively bright next year.