Eurozone and Switzerland may be among the most economically exposed to a global pandemic scenario – Wells Fargo

A report from Wells Fargo points out that Switzerland and the Eurozone may be among the most economically exposed advanced nations to a global pandemic scenario, while Korea and Singapore look to be relatively more exposed than most other emerging economies. They add that the US and emerging economies in Latin America seem to have relatively less exposure.

Key Quotes: 

“As the coronavirus spreads across the globe, it is becoming increasingly difficult to nail down the global effects of the virus and the associated economic disruptions.”

“Our analysis suggests that Switzerland and the Eurozone may be among the most economically exposed advanced nations to a global pandemic scenario, while Korea and Singapore look to be relatively more exposed than most other emerging economies. In contrast, the U.S. economy and emerging economies in Latin America seem to have relatively less exposure.”

“Among advanced economies, Switzerland is far and away the most globally exposed, which may in part reflect its status as a global banking center. In fairness, that activity may not be as significantly affected as traditional goods exports, but the number still looks relatively concerning.”

“Among emerging economies, Singapore is the most globally exposed by a substantial margin, unsurprising given its status as a major intermediary in global trade flows.”

“Among the countries that have relatively less exposure to a global pandemic based on our metrics, the United States stands out among advanced economies, particularly on the demand side. Meanwhile, Colombia, Turkey and Mexico are among the least exposed on both supply and demand metrics, while in general we note that the Latin American region as a whole seems to have relatively less exposure, particularly compared to emerging Asia.”