The Impact of Corona Virus on Global Economy & Healthcare
With the novel, Corona Virus which yet has no cure or treatment has reached the infected cases up to 1,98,587 and the deaths due to the virus have reached 7,988 from November 2019 to date.
After declaring it as a pandemic by the WHO (World Health Organization), many countries and states have initiated the lock-down of malls, pubs, restaurants, bars, cinema halls, events, award shows, marriages, etc. have been suspended for the time being as a preventive measure to contain the spreading of coronavirus.
Till now it is known to have originated from the wet markets of Wuhan, China and it is said to have its first case in November 2019. It’s been 2 months after the breakout of the novel virus that it started spreading wildly in different countries in the months of January, February, and the half of March making it to up to 162 countries and territories around the world and 1 international conveyance (cruise in Japan).
Corona Virus impacting global healthcare and economy
It is not just the panic-stricken faces you will get to witness with the emerging cases of coronavirus, but as it is contagious in nature, it makes it more difficult for people to step out of their homes consequently impacting the economy on a greater scale.
The travel and tour business is declining at a very high rate with every country barring the air travel from the infected countries such as Italy, China, UK, and the US is on the top list. Shopping malls, markets, restaurants, gyms are facing a critical decline in the market. As for the healthcare industry and the healthcare of the people, countries which are unequipped with the right amount of resource and health policies are facing grave issues and are running out of appropriate safety and health measures for the infected people.
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The Automotive market condition
The automakers are shutting down their factories in Wuhan and in other countries including the leading players whose situation has reached a halt with the brands such as General Motors, Honda, and Dongfeng Motor and others facing a loss of a minimum of 3,50,000 units of vehicle production.
The decline in the automotive market is also a visible cause of the COVID-19 which is forcing people to put themselves under isolation/quarantine.
The Food and Beverage industry
As China is the most affected country till now with the greatest number of deaths, the country’s imports and exports being shut down have a great impact on the economy of the food and beverage industry too.
China is accountable for up to 10% of Coca-Cola’s global sales volume and the outbreak of this novel virus has taken a toll on its operations bringing it to a complete halt.
The brand Starbucks has also shut down half of its stores and in the country with major concerning issues of loss. As everyone has been suggested to stay home to stay safe, the restaurants, hotels, and cafes are for sure facing a low sale status. If this situation is to linger for more than a month and still the virus is not contained, the restaurant owners won’t have a choice but to snatch the jobs of many workers.
The Facing issues of the Oil Industry
The oil industry was already facing a weak status in the market with its prices dropping incessantly, however, the COVID-19 has taken a huge impact on the Oil industry. It has now come to the disruption of the industry and the decline in the price of oil is creating an imbalance in the economic and manufacturing sectors to cut down the cost of production.
With not a single soul traveling, the market is witnessing a visible decline and is slowly drooping its demand inflicting its whole economic growth. The major part to take notice of here is that China is the second-largest economy in the world and anything going down there is for sure going to affect the global importing/exporting business. A Chinese Oil and Gas enterprise that runs after the name of Corp planned to cut down its output in the month of February 2020 by about 600,000 barrels per day or by 12%.
Also Read: Understanding Consumer Buying Behavior Amid Corona Virus
The major affected business of Airlines
As the flights within Mainland China has been suspended and from and to China have also been suspended, now with other countries such as UK, US, and Italy, many countries are suspending flights and travel airline from the major infected cases found in countries. Such drastic events have brought up a loss in the airline industry which might need months to overcome the critical situation
Such drastic events have brought up a loss in the airline industry which might need months to overcome the critical situation
With already many airline organizations to halt their work is making it difficult for people to travel and so the business of airlines is to go down consequently which will take months to overcome the loss
The consequences of Corona Virus/ COVID-19
Although as per the experts it is quite soon to presume the lengths of the consequences of the COVID-19 or better known as Corona Virus but they have presented their concern for the halt and disrupting supply chain industries and markets as a whole.
Goldman Sachs, an American bank, concluded with their estimation so measured to be that the Chinese economy would drive a hit to the annual growth of the world’s GDP by 0.1 to 0.2% in 2020.
It is also said that the condition is much worse than the widespread SARS epidemic caused. China being the focus of this virus holds a total of 16.3% of the world’s GDP which is a very clear image of how it can impact the global economy.
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