How Coronavirus is Impacting Market Globally
The spread of the Coronavirus
throughout the world began in March 2020, termed as a viral disease and
generally known as COVID-19. Till now, it has been spread over 138 countries
and has swallowed many lives. Its main origin was Wuhan, China, and now become
popular in almost 75 percent of the world.
Until now, 138,240
cases of Coronavirus have been found out, of which 5,081 people died. The most
severely affected countries other than China is Korea and Italy. Due to its
overnight spread in the world, it has affected the industries, businesses, and
the job market that has caused billions of economic losses in almost every
field of life.
China has faced a 4.5%
downfall in its economy due to this disease. For now, China’s global growth is
weaker than it was in 2003. Corona Virus has also lowered the mortality rate. The
United States is also facing a huge decline in its economy because it has lost
1.6 million visitors from China, which cause a $10.3 billion economic loss. The
economic growth ratio of different countries came to fall due to this deadly
disease, as it is illustrated in the lower figure.
Countries around the world are facing major
business downfalls where most of the people made China its culprit. The virus
does not only affect the environment and people but is also affecting the
business and marketing worldwide.
For instance, all the
countries have stopped traveling to control the spread of the Corona Virus,
thus cause extended degradation to tourism across the world. For example, Thailand
is facing 70 % less tourism as compared to its normal flow, which makes Corona
the second threat to tourism after the deadly Tsunami attack.
In parallel, a kind of
trade war has been started because all the countries have stopped the import
and export from China, thus causes its major exports to slump down to a $7.1
billion deficit that accounts for 60 % of the last year. Besides China, all the
countries are in the worst economic and social rotation of downfall. It has
also affected the employees and workers who came from other countries and
forced to do a 14-day quarantine check-in utter isolation. We will now list
some of the declines that are caused by the deadly viral disease.
The decline of Healthcare Centers
After the spread of the
Corona Virus, the demand for Health Care centers has been increased because the
only way to stop the spread of the Corona Virus is “Isolation.” This
cost a bulk of isolated bedrooms. As it is reported in the world news that
China had made its empty buildings to the part-time hospitals to meet the
increase in its patients. This impact demands more and more medical facilities
that are currently in decline.
Service Industry Workers
The world is also
facing a decline in business due to the shortage of service Industry workers
because they are not getting any services. This decline in services cost the
air and tourism workers to lose their jobs. There are also many remote workers
that did not get the proper job benefits because most of the developed nation
companies shut down their work for a month or two.
Corona Virus has disturbed
the supply chain of products inside as well as the outside of China. China and
many other countries have done the factory shutdown, which has disturbed the
whole business schedule of the countries and thus cost a burden of $60 million.
The disturbance in the
supply chain affects the whole factory output. For e.g., the goods are not being
transported on time and are effecting the economy a lot. This caused our world
a deprivation of the products that are only made in China.
Customers Buying Less
Due to fear of Corona Virus,
people avoid going outside, and they are not attending any activities or
festivals. People are not even going out for shopping or buying anything due to
which customer buying value is getting lesser and lesser. The restaurants and
shops are also not getting any value from people due to the fear of getting
China has a huge smartphone shipment, but due to the Coronavirus, it has been blocked. Most of the developing countries like Pakistan, India, Bangladesh, and African countries are mainly victimized of this deprivation because they are the biggest importers of different mobile phones from China. According to economic experts, it will also increase the deficit in China exports to $17.2 billion.
China is also facing
traveling restrictions due to this disease. The UK, US, and other countries
have blocked their flights from China. The Chinese people are also being
blocked and checked at every airport. In addition, China is facing huge air
departure declines, and huge booking change has been observed from the last two
months that cost the people to pay more than 50% of the overall price.
The educational Institutes are being restricted due to the fear of Coronavirus. It affects the children’s education because the Schools, Colleges, and Universities are ordered to remain closed for some time. It causes a major downfall in the stationary, education, and uniform businesses. In addition, the teachers and professors are forced to change the educational plans, which cost them the extra work at the same salary.
The Disney land theme
park has also been temporarily closed for some time due to the fear of
infection, especially in Shanghai and Hong Kong. It has been observed that
these theme parks hit a $175 million loss that has a huge impact on the
entertainment economy of China and Hong Kong.
The World Health Organization (WHO) has
ordered closed and postpones all the festive events due to this disease. This
will cause a billion dollars’ failures in the entertainment and planning
Biggest Software and IT Company Microsoft
As all know that Microsoft
is a huge company, and it has owned a large number of employees and workers in
the IT community. But, due to the Corona Virus, it has announced to close all
the offices and ordered all the employees to work from home.
Still, all the employees
are properly paid, and all their wages are also being paid according to the
contracts, but the decrease of orders cause Microsoft a major imbalance in the
supply and demand.