The coronavirus has so far infected more than 200,000 people and claimed almost 10,000 lives. Aside from the major challenge posed to public health systems across the world, it is already clear that China’s massive presence on the international stage and the interdependency of the global economy means the virus is likely to cause far-reaching economic and geopolitical consequences as it continues to spread, including here in Israel.
In an effort that has proven effective in containing the spread of the virus in China, factories and businesses have been shut down, and some 60 million people were confined to their homes in Hubei province alone. The city of Wuhan, where the virus originated, and Hubei province, in general, were effectively sealed off, in what has been described as the largest quarantine in human history. This dealt a major blow to productivity. In an attempt to stem the spread of the virus, many countries placed restrictions on movement to and from China, severely hampering the flow of trade. Economists predict that China’s economic growth could slow to as low as 4% in the first quarter of 2020, the slowest pace in over a decade.