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Effects of Coronavirus on the World Economy

It is now not a secret that a deadly virus is spreading its wings quick worldwide. This new coronavirus (2019-nCoV) outbreak first came from China’s Wuhan City. Countries around the globe are now fighting hard to prevent it from entering their borders. What is Coronavirus? Coronavirus is a family of viruses that has strains that […]

Effects of Coronavirus on the World Economy

It is now not a secret that a deadly virus is spreading its wings quick worldwide. This new coronavirus (2019-nCoV) outbreak first came from China’s Wuhan City. Countries around the globe are now fighting hard to prevent it from entering their borders.

What is Coronavirus?

Coronavirus is a family of viruses that has strains that bring about possible deadly diseases in both birds and mammals. The virus gets its name from the crown-like spikes which appear on the surface. Humans get infected via airborne droplets whereby fluids from an infected person get in contact with an uninfected person. This is possible when one breath, coughs or sneezes.

Coronavirus has seven types, which can affect humans. The common ones are: 229E (alpha), NL63 (alpha), OC43 (beta), and HKU1 (beta). Other viruses that affect humans include MERS-Cov (beta), SARS-Cov (beta), and SARS-Cov-2 (the novel) which is the latest identified in 2019 that causes COVID-19. Most countries worldwide are now under threat.

Common Symptoms of Coronavirus

It is now not a secret that a deadly virus is spreading its wings quickly worldwide. This new coronavirus (2019-nCoV) outbreak first came from China’s Wuhan City. Countries around the globe are now fighting hard to prevent it from entering their borders. Italy and China are the most hit with high cases of deaths and those infected. African countries are now the latest nations to record a few cases, however, quarantine of those with similar symptoms is instant.

Here are some common signs of an infected person. Cough, sore throat, headache, fever, and breathing difficulties are major ones. Cases where it gets severe include pneumonia, kidney failure, acute respiratory syndrome, and even death in most cases.

China’s Hubei province bears the full impact and worse hit by this disease, which has become a devastating world health emergency. Now that millions of people are restricted to go to and from China, this outbreak will have consequences for the global economy as well. Here is how the epidemic threatens world growth, where most countries depend on China’s economy.

World Economic Effects of Coronavirus

A perfect example is China, where the COVID-19 coronavirus has brought businesses to its knees. Over 70,000 cases confirmed and the economic damage is now escalating around the globe. 

According to Reuter’s poll of economists of 7th – 13th February, the economic growth of China will decrease to 4.5% in 2020 first quarter from 6%. Since the financial calamity started, this is the slowest pace. However, the financial system to recovery depends on how fast they contain the virus. 

Currently, China supplies the world with most products, both electronics, and non-electronics. Therefore, a shortage of parts and goods (in both finished product and components form) is affecting every business that depends on this supply. The lunar year is here, and lack of merchandise is delaying their opening. To make it worse, workers keep off to help lessen the spread.

A good example is Foxconn in China, Apple’s manufacturing partner. The firm couldn’t open its Longhua complex as there is a delay in production. Most semi-skilled laborers come from inland provinces. With the transport system shut down and imposed quarantines, then moving back and forth their homes to the workplace will be difficult. 

Worst of it all, most of the workers cannot afford high-speed rail. Mr. Shih, the Harvard Business School Professor, says things will be tight on items like phones, computers, and TVs. Dominant manufacturers of flat panels used are Chinese in Wuhan and that’s the area affected most.

The car-making area is another sector where the virus is causing havoc. Those experiencing the effect include Hyundai and Nissan outside China. They have closed temporarily because they can’t get their spare parts to supply on time. The popular sporting events and trade shows across Asia and in China are postponed or called off. 

Factories are shutting down and so their product flow is slow. This move affects companies like Nissan and Apple that have branches around the world. Most enterprises have disrupted good supply and loss of revenue because industries are closing. 

The most common reason for this is that most workers get travel restriction orders. Therefore, they cannot move from their homes. The government is using force to quarantine most families to prevent further spread of the virus.

There are visible signs of falling oil demand from China. Most of the oil from around the world go to China. The most affected industries after the outbreak of the virus are manufacturing and travel. The International Energy Agency (IEA) foresees a big drop in oil demand for the first time in a decade. In over ten years, they expect a fall by 435,000 barrels in the first quarter of 2020.

Countries worldwide are shutting down because of the outbreak, which is in return affects their economy. Medical and health experts are working round the clock to find a vaccine. Therefore, it is important to follow the simple measures given to prevent further multiplies of the bug.

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