Coronavirus - economic implications

Please click the link below to view Shane Oliver's views on the economic and investment market impact of the coronavirus outbreak.

Key points raised are :

  • The coronavirus outbreak has led to concerns of a global pandemic triggering an economic downturn
  • Our base case is that the outbreak will be contained allowing share markets and bond yields to rebound.
  • However, uncertainty is high given that the coronavirus is more contagious than SARS albeit with lower mortality. 
  • Key to watch is a peak in new cases and contained transmission in developed countries.