A recent Reuters poll reveals that the economic impact of the coronavirus outbreak on China as well as the rest of the world is expected to be short-lived, but the global economy is likely to continue facing downside risks for some time.

Economists have also highlighted that China may not be able to to meet all the terms and conditions in the recently signed phase one trade deal with the US, under which it was supposed to increase purchases of us goods and services by up to $200 billion over the next couple of years. Notwithstanding this, economists feel optimistic that the US economy will continue to grow at moderate pace as previously forecast.

Economists anticipate that the US economy could grow at 1.5% in Q1 2020, only 0.1% lower than previous estimates, after which economic growth could pick up to 1.8-2.0% in the subsequent quarters till next year. The likelihood of the US economy slipping into recession has increased only slightly from 20% to 23% as per the most recent poll.