Capital Economics analysts expect

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However, China is now more vulnerable to the crisis than it was 17 years ago, when SARS broke out.

“China has much higher debt, trade tensions with its major trading partner, and its growth has been steadily slowing for several years, which gives it a weak starting point for overcoming such a crisis,” said Raphie Hayat, senior economist at Dutch bank Rabobank.

the government to announce additional measures in the coming days. If the virus continues to spread, they say, Beijing will have to abandon its long-standing efforts to get its debt under control and pump money directly into the economy.

In recent weeks, central banks in neighboring countries oman number data including Sri Lanka, Malaysia, Thailand and the Philippines have cut interest rates. South Korea and Taiwan could be next.
But the financial world’s big powers are exhausted by a decade of struggling with anemic growth since the global financial crisis. The European Central Bank introduced negative interest rates in 2014 and has not been able to raise them since, while the Bank of Japan is in a similar position. The U.S. Federal Reserve already cut rates last year; Chairman Jerome Powell has said he is watching the situation closely.

Meanwhile, debt levels have risen in the United States, Japan and key European countries, including Italy, limiting the scope for a major fiscal stimulus in the event that the global economy goes into a full-blown recession. Global debt, including loans from households, governments and companies, has more than tripled, according to the Institute of International Finance.

Also important is whether governments can coordinate their response to an outbreak, ideally involving multinational agencies. This is especially true given that, according to the World Bank, preparedness for a potential pandemic is low. But coordination can be difficult in a fragmented world where nationalism is often valued over solidarity.

“It is clear that multinational institutions are under more pressure and have fewer teeth left every day than they did 10 years ago,” Schering said. “But the optimist in me would like to believe that in the face of a global pandemic, global institutions are still able to respond appropriately.”