Beautiful Virgin Islands

Monday, Aug 04, 2025

Dr. Doom warns coronavirus will shock Chinese economy

Dr. Doom warns coronavirus will shock Chinese economy

Nouriel Roubini warns the coronavirus outbreak will have a big impact on the global economy.
The economist nicknamed Dr. Doom for his dire, but accurate, predictions says the coronavirus outbreak will rock the Chinese economy and send shockwaves to the U.S. and rest of the world.

The disease, which originated in Wuhan, China, has led to the lockdown of more than 60 million people and caused scores of companies to temporarily shutter or reduce operations in the country, bringing the world’s second-largest economy to a grinding halt.

“The economic damage done to China implies that China cannot grow more than 4 percent this year," Nouriel Roubini, CEO at Roubini Macro Associates, said on “WSJ at Large” with Gerry Baker. "The transmission through trade and other channels is going to be seen across the world.”

At a 4 percent growth rate, the Chinese economy would be operating far below its potential. Even amid the challenges of a U.S. trade war that made Chinese goods far more expensive, the economy grew at a 6.1 percent pace in 2019. That was its slowest rate of expansion since record-keeping began in 1990.

Shrinking from 6 percent to 4 percent, however, means China's growth is reduced by a third, Roubini said.

"China accounts for about two-thirds of global growth," he added, "so the spillover with trade, confidence, business” can be significant.

Although China will bear the brunt of the impact, its complicated international ties will transmit some of the pain to the U.S. and other countries.

“The virus will have a smaller impact on the rest of the world, through a hit to the global tourism industry and short-term supply chain disruption in the first half of this year,” Moody’s analysts wrote.

A number of U.S. companies, including Apple, have warned that closings of factories and stores in China are hurting both the supply of and demand for their products. Additionally, the grounding of U.S. flights into and out of the country chokes off spending by the Chinese consumer, which accounts for 0.4 percentage point of global gross domestic product, according to the investment bank Goldman Sachs.

Roubini doesn’t think the damage caused by the coronavirus will be enough to tip the U.S. economy into recession, though he said economic growth in the U.S. and Europe may “surprise on the downside.” He sees U.S. economic growth slowing from 2 percent to 1.7 percent, or a little more.

While that suggests there’s no need to worry about an imminent financial crisis, Roubini believes there are some warning signs on the horizon.

“Last time around was housing, and mortgages, and banks were regulated,” he said. “This time around, it’s going to be corporate debt and shadow banks that lend to these corporates. Eventually you could have a credit boom and bust and a crisis -- give it a couple of years.”
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
Tesla Seeks Shareholder Approval for $29 Billion Compensation Package for Elon Musk
Nvidia is cutting prices on its RTX 50-series graphics cards after sales slowed and inventories piled up
Ghislaine Maxwell Transferred to Minimum-Security Prison Amid Ongoing DOJ Discussions
U.S. Tariffs Surge to Highest Levels in Nearly a Century Under Second Trump Term
Matt Taibbi Slams Media for Role in Russiagate Narrative
Pilots Call for Mental Health Support Without Stigma
All Five Trapped Miners Found Dead After El Teniente Mine Collapse
Ong Beng Seng Pleads Guilty in Corruption Case Linked to Former Singapore Transport Minister
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
Italy Fines Shein One Million Euros for Misleading Sustainability Claims
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
Declassified Annex Links Soros‑Affiliated Officials and Clinton Campaign to ‘Russiagate’ Narrative
UK's Online Safety Law: A Front for Censorship
Nationwide Protests Erupt in Brazil Demanding Presidential Resignation
Parents Abandon Child at Barcelona Airport Over Passport Issue
Mystery Surrounds Death of Brazilian Woman with iPhones Glued to Her Body
Bus Driver Discovers Toddler Hidden in Suitcase in New Zealand
Switzerland Celebrates 734 Years of Independence Amid Global Changes
U.S. Opens Official Investigation into Former Trump Prosecutor Jack Smith
Leaked audio of Canada's new PM Mark Carney admitting the truth about the Net Zero agenda: "We're gonna make a lot of money off of this."
China Enforces Comprehensive Ban on Cryptocurrency Activities
Absolutely 100% Realistic EVO Series Doll by EXDOLL (Chinese Company) used mainly for carnal purposes
World Economic Forum founder Klaus Schwab: "In this new world, we must accept... total transparency. You have to get used to it. You have to behave accordingly. But if you have nothing to hide, you shouldn't be afraid."
Meet Mufti Hamid Patel, head of Office for Standards in Education in Pakistan
George Soros tells the World Economic Forum: "President Trump is a con man and the ultimate narcissist, who wants the world to revolve around him."
Hamas are STARVING the hostages.
Decline in Tourism in Majorca Amidst Ongoing Anti-Tourism Protests
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
Poland Begins Excavation at Dziemiany After New Clue to World War II‑Era Nazi Treasure
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Threatens Canada with Tariffs Over Palestinian State Recognition
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Trump Sues Murdoch in “Heavyweight Bout”: Lawsuit Over Alleged Epstein Letter Sets Stage for Courtroom Showdown
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
×