1Professor Adir Dos Santos Mancebo JuniorECO201317 March 2020Macroeconomic effect on the coronavirus outbreakAs of March 2020, the number of people infected with the Covid-19 has almost surpassed200,000, with nearly 8,000 deaths. In order to contain the outbreak, many counties have full orpartial quarantines. As the number of cases and deaths across the world continue to rise, the virusis also taking its toll on global economy.The outbreak started in China, which is the heart of complex supply chains for many companieslocated out of China due to offshoring. This country has also by far the most coronavirus cases,which makes this situation even worse. Many factories had to close their doors, resulting inshocks across a wide range of industries. For instance, the South Korean carmaker Hyunday announced that situation will halt theirproduction in domestic countries because of the components shortage. Many other companiesaround the world also announced that they are running out of components and might have toreduce or halt their production.