Till now the corona virus outbreak affects more than 180,000 people and out of which more than 3000 people die. But it is not limited to the health of the individual. It creates a huge impact on the business. So in this article, we will discuss how much corona virus impact the business world.
Moreover, as the corona virus outbreaks spread even the big company’s start painting a bleak picture of broken supply chains, empty stores, disrupted manufacturing, and flagging demand for their wares.
When the corona virus starts spreading out of china the investors start worrying about the market. Due to which you can see the big shifts in the share market.
Moreover, due to corona virus most of the cities are in lockdown. Global trade, commerce, supply chains, tourism, and investments are stopped due to which every country is facing a decrease in every business sector.
In this article, we will discuss some key factors to see corona virus impact on different economies and industries.
Corona virus Impact on the Global Market
In the second week of March, the global market gets its biggest decline since 1987 and the main reason for this decline is a corona virus. Till now the market has seen several major swings and continued volatility.
Moreover, to improve this US banks have decreased their interest rates so they can encourage people to spend more money by making the borrowing cheaper.
To know whether any country is growing or not we generally look at its GDP change. After the outbreak of corona virus, the GDP of all countries is decreasing.
The GDP of China is affected most followed by the US, UK, France, Japan, Germany, and Italy. All other countries don’t get a huge impact on their GDP.
Impact on Travel Sector
The travel industry is facing a massive impact because airlines are cutting the flights and tourists are cancelling their business trips and holidays.
Analytics shows that a large number of airline tickets are cancelled in the march. Moreover, most of the countries start imposing restrictions on travelling. So they can stop the corona virus to spread more in their country.
Even various large scale events are cancelled to avoid public gathering. Due to this also the number of flight cancellations increased.
Factories Shut Down
China is the world’s largest exporter of goods. But due to corona virus most of the countries stop exporting goods from China which results in a slowdown of the factories from all over the world.
These import-export restrictions affect the supply chain of most of the big companies. Because almost all of the companies rely on China’s production. So when the import-export stops all companies have to find new ways to get the resources or had to shut down their factories for some time.
People Start Spending Less
Due to the fear of coronavirus, most people start avoiding activities that might expose them to the risk of infections. People stop going to the restaurant, malls, theatres, and other crowded places. Due to which there is a huge fall in customer demand.
Car making companies also get a bad impact due to coronavirus. Many carmakers like Tesla or Gelly start selling their cars online. Because customers are trying to stay away from showrooms. So to get reduce the loss they start selling the cars online.
The smart phone industry which is very booming till now also gets problems because the shipment of smart phones takes a big hit. Even the tech giant Apple also says that their sales are reduced because of low customer demand.
However, some businesses get a great boost because of coronavirus. Companies of hand sanitizer get a huge customer demand. This happens because people believe that hand sanitizer protects against the spread of the disease. Although there is no scientific explanation behind this.
Impact on Gold Trading
The price of gold also increased. Even its spot price hit a seven-year high of $1,682.35 per ounce in February. This happens because most of the investors start investing in Gold.
Investors take the money from the other business which affects by a corona virus and start investing their money in buying Gold. Because Gold is a safe source for everyone. As there are very fewer chances that people will get a loss by investing in Gold.
As the effect of the coronavirus, the outbreak continues to spool. Here is Confucian advice. Be warned, prepared and hopeful.
Moreover, with the spread of coronavirus, it is important to act swiftly and in meaningful ways to minimize the fallout from this shock.
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