Coronavirus clouds EU economic forecast

The coronavirus should have a limited impact on the eurozones economy as long as the outbreak peaks in the first three months of 2020, the European Commission said Thursday.

But that could change if the outbreak lasts longer, it added.

The Commission issued the warning in its updated economic forecast for the euro currency area, which predicted steady growth at 1.2 percent this year and next — unchanged from its November version.

“The outlook for Europes economy is for stable, albeit subdued growth over the coming two years,” the Commissions economic chief, Paolo Gentiloni, said in a statement. “As for the coronavirus, it is too soon to evaluate the extent of its negative economic impact.”

It wont be long, however, before the side effects of COVID-19 eat into the eurozones economy. Chinese authorities have closed factories that companies across the world depend on for their products, in an effort to stem the outbreak.

“The longer it lasts … the higher the likelihood of knock-on effects on economic sentimeRead More – Source