Now it’s not just China, but many other countries which are being affected by the highly contagious Coronavirus or COVID -19. Italy, Iran South Korea and now Brazil too have started reporting Coronavirus death cases which is spreading panic. Economies across the world are fearful of this virus being a pandemic and the stock indices across the world are dropping.
Automobile, technology and apparel companies are saying that this mass epidemic is brutally hurting their businesses. Do you think this can be the beginning of an economic fallout?
As per the Oxford Economics, worldwide economy has plunged over $1 trillion due to the Coronavirus. The virus which originated from Wuhan in China is spreading at a very rapid rate and can soon become a global pandemic.
The death toll has crossed the mark of 2000, which is the highest in case of any epidemic in the recent times. The majority of cases are from China, but other Asian countries including Malaysia and South Korea are also having a large cluster of infected cases.
You might remember the impact of Severe Acute Respiratory Syndrome (SARS) epidemic, which originated in 2002, and lasted for nine months. The growth of China was hampered by over 2 per cent at that time. The death tolls this time have already topped that of the SARS epidemic. The SARS resulted in around 800 deaths. Considering this fact, it is obvious that the economic impact of Coronavirus will be very large.
The renowned car manufacturer – Jaguar Land Rover, along with various other companies of the same sector, complained for a shortage of supplies for parts and various other raw materials which is severely impacting the manufacturing, This in turn is impacting the business a lot.
The technology giant Apple Inc. has already cut down the production of its iPhones. China, being the home for the main assembly unit for Apple, is under a complete public lockdown. The Coronavirus outbreak has resulted in huge losses for the quarter results of Apple and other technology companies. The increasing number of cases in South Korea will surely impact another technology giant – Samsung electronics.
The apparel companies Adidas and Puma too have raised concerns over the Coronavirus outbreak. China is one of the most prominent market for the retail sales of these brands and a complete lockdown has severely impacted the sales of the companies thus affecting the overall business.
There have been various concerns from travel and hospitality companies too as people are avoiding travelling. There has been a serious decline in tourists throughout the Asian countries which is impacting the tourism and hospitality businesses.
There has been a drastic fall in markets across the world. The reason being the lockdown in China, which is the leading manufacturer and supplier for raw material for all sectors. It is expected that if Coronavirus is not controlled and starts gaining pace in Non-Asian countries, the results can be disastrous.
It is recommended to take all the necessary precautions and stay safe. The virus has severely impacted the global economy which has plunged over $ 1 trillion after the Coronavirus news hit the world. If the virus keeps on spreading, this number can further rise to unprecedented levels.
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