However other economies in the region can attempt to

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corporate distress. However , other economies in the region can attempt to boost their domestic economies to offset the coronavir us’s headwinds. For example, Thailand and the Philippines are likely to cut interest rates later this month. Last year several Asian economies mitigated the effects of a slowdown in China with monetary and fiscal ease which helped to support overall GDP growth. A similar response is possible this year especially if the crisis persists. Major central banks such as the US Federal Reserve and the European Central Bank are not likely to respond with easier policy. But by adding to near-term downside risks to the global economy the case for maintaining the current easy stance of policy is strengthened.
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To sum up, the short-term economic effect of the coronavirus will be significant in China with spill-over effects on other Asian economies. A comparison with similar episodes in the past suggests that lost economic activity will be recovered quickly provided efforts to control the spread of the virus are successful. Michael Taylor 4 th February 2020
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