The Year of the Rat has started off disastrously in China, as the coronavirus outbreak has claimed over 100 lives, with over 4500 confirmed infections. The virus has now reached at least 14 countries, including a host of Southeast Asian nations, the United States, Germany and France. Chinese authorities have scrambled to deal with the epidemic, which originated in Wuhan, a city in eastern China. Officials have quarantined the city and also halted public transportation, but will this be sufficient? Global markets remain on edge, as investors are wary of a mass epidemic.

China’s economy, which is already in the midst of an economic slowdown due to the trade war with the U.S. and weak global demand, will take a hit from the coronavirus, and the repercussions could be felt worldwide. Back in 2003, the SARS epidemic, which also originated in China, spread to 17 countries and killed over 700 people. The damage to China’s economy was significant, with analysts estimating that GDP declined between 0.5% and 1.5%. Chinese stock markets have been closed until at least February 3, and the Chinese yuan has slipped to its lowest level in a month. In addition to China, Asian Pacific countries are feeling the economic bite from the outbreak. The Australian and New Zealand dollars have fallen to multi-week lows, and the South Korean and Australian stock markets are down this week.