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28 Feb, 2020 14:05

World economy heading for a slowdown ‘without question,’ professor tells Boom Bust

World economy heading for a slowdown ‘without question,’ professor tells Boom Bust

Fears of the rapid spread of the coronavirus have panicked investors, sending world markets into a tailspin.

RT’s Boom Bust talks to the Dean of Miami University Business School, John Quelch, about what this could mean for the global economy.

“Until about a week ago we were talking about a supply-side problem,” he says, pointing out that the shutdown of factories in China was essentially disrupting supply chains worldwide.

“Now we are talking about a demand-side problem that is beyond China spilling over to the rest of the world.”

Demand-side problems mean consumer fear and lack of consumer confidence which is going to result in the postponing of purchases, according to Quelch. That’s not just the travel industry and entertainment industry, it’s automobiles, it’s household appliances, it’s buying a new house, he explains.

“When there’s this level of fear and uncertainty on the demand side, you can see a slowdown without question.”

For more stories on economy & finance visit RT's business section