How the coronavirus could spark a severe slowdown or recession in America
CNNNew York CNN Business — The longest economic expansion in American history has survived an unprecedented trade war, a catastrophic tsunami in Japan and a severe crash in oil prices. If the American consumer loses faith, and the coronavirus will be a real test of faith, then a recession is going to happen.” Mark Zandi, chief economist at Moody's Analytics It’s easy to imagine how a coronavirus outbreak like those gripping South Korea and Italy could cause Americans to hunker down, limiting visits to crowded restaurants, malls and airports. “The American consumer is the firewall between an economy that’s growing and one that’s not,” Mark Zandi, chief economist at Moody’s Analytics, told CNN Business. “If the American consumer loses faith, and the coronavirus will be a real test of faith, then a recession is going to happen.” In light of the health scare, Zandi this week raised his probability of a recession in the United States during the first half of 2020 to 40% from 20%. “But two weeks ago the South Koreans and the Italians didn’t think it was a problem.” Trade war already weakened the world economy The risk of further outbreak is heightened by the fact that the global economy is already teetering, in large part because of lingering damage from the US-China trade war.