Many countries have declared a lockdown in response to the coronavirus pandemic. This means that people will be forced to stay home for the majority of the day. The pandemic appears to be slowly calming down. There are still more than 1,000,000 people infected. Nearly 90,000.
Different forecasts exist on the effects of isolation and quarantine upon all world economies. Everyone is aware of this serious situation. It seems like a large part of the global economy has stopped with very limited import and export. Every worker can’t work from home. This outbreak led to many people losing their jobs or staying home to get compensation.
The most affected are small and medium businesses, particularly tourist agencies, small restaurants, hotels, shops, and other outlets. Even though the impact on their business was smaller, online businesses have been able to operate without any problems. This is why so many people search for online work options, and are willing to travel to find them. You can apply for a job through an online platform such as Upwork if you are a designer, developer, or business professional. If you are a skilled trader,
We can also see the impact of large global market fluctuations on shares of corporations and funds of ordinary people. The growth of most economies has slowed down and countries are preparing strategies to recover their economies after the pandemic. We will be presenting to you the most pressing issues facing the global economy and the impact of COVID-19.
Covid-19: Going online and doing business under it
Many businesses that had already gone online to weather the storm did not survive the outbreak, but they still survived and prospered during the coronavirus pandemic. Companies that had an existing online business were able to maintain business continuity, weather the storms, and retain customers even during the peak of the Covid-19 pandemic. The online market and eCommerce have experienced a dramatic increase in interest since WHO recognized the importance coronavirus pandemic. However, the internet and digital economy are still among the fastest growing sectors of the global markets. Those who started an online company to do business under COVID-19 are well-positioned to reap the rewards of an online enterprise well into the future. Additional information on doing business under COVID-19: Going online to weather the storm
- Production Impact
The problem with global production is that many fabrics are locked in China. This is where most companies around the globe import essential goods. The closing of many manufacturers has had a significant impact on the car industry, with sales dropping significantly. However, even manufacturers that are still producing cars will soon run out equipment and components they mainly imported from China.
Technology is facing a difficult situation, as China holds more than 30% of the market. The lockdown has impacted both the macro economy as well as small businesses, so countries will need to take delicate measures. Some countries have already come up with short-term solutions. For example, the United States is planning to spend 2 Billion dollars on their recovery.
- Travel restrictions
More than 100 countries have implemented travel bans. This has had a significant impact on the travel industry and the tourism and flight companies. The European Union introduced travel bans that prohibit anyone from traveling to the EU for more than 30 days. The United States, on the other hand, banned flights from Europe. Some researches show that the global number of flights fell from about 200,000 to close to 50,000 per day.
Many hotels and flight companies are having to layoff workers in order to avoid bankruptcy. Because many cannot bear to stay under lockdown for more than a month, smaller resorts, tourist agencies and restaurants face the most severe challenges.
- Global Market Impact
Experts warn us that there will be another recession in the world economy, possibly worse than 2008’s. There are many indicators that this is true, such as the fall in asset prices and decreased bond value. Global Economy is at risk right now, and there are three possible effects of the recession on it: The Real Recession which is caused lack of goods or production; Policy Recession where banks will have to increase their interest rates; and Financial Recession that will cause huge economic imbalances worldwide.
The global market could see major changes if the pandemic does not end soon. This includes a drop in prices for houses and apartments, poorer consumption habits, lower production and many other things. We can also see an increase in online shopping due to people adapting to the current environment. This is especially true for the largest platforms such as Amazon, eBay, and Ali Express. Many countries also have online platforms that allow students to keep up with their lectures. There are many other areas where digital technology can be applied.
The Biggest Repercussions and Recovery Methods
There are two main scenarios for recovery from the coronavirus epidemic. Both rely on the amount of time needed to make the virus less dangerous. The worst scenario, in which industry is kept locked down for longer periods, will have a much greater negative impact. More companies will be forced from production and trade. This could have serious consequences for companies that rely on imports.
We can see that things are improving and people are recovering quickly. The activity in many industries will increase if states remove lockdown measures before the end of the month. This is especially true in China, which is the largest producer of raw materials essential for production. The recession can be avoided with continued production and activation in all global economies. This is in addition to the planned measures taken by many countries to support their companies, economies, and small business.