What we are facing now, emotionally, in many ways, reminds us of what our country has encountered in 2008 or even 9/11. The new global virus thread may keep us contained for many months. Needless to say that such a huge change in our normal lives has already impacted our relationship with the outside world and even our government. Unfortunately, there will be a bigger impact. Thus, according to experts, the new coronavirus nearly brought the World economy to its knees and may cost the Global Economy almost $3 trillion. Here is how it may affect the World’s Economy.
- Financial markets may crush
Today economic turmoil caused by the coronavirus pandemic has already made a severe impact upon financial markets. For example, the UNDP expects that developing countries will encounter more than US$250 billion reductions in their revenues. Also, experts believe that the economic impact of coronavirus will last for many months or even several years.
- Death of a tourist industry
As you know, the tourist industry fully depends on open borders and mobility. It is obvious that the tourist industry suffers heavy losses during the lockdown. If you are one of those people who want to meet a foreign single girl online, you must know that it may become harder to meet her online. Furthermore, experts believe that the cost of airfares will increase, because some airlines may go bankrupt. Also, we can expect that tourist companies, agencies, hotels will go bankrupt too.
- Industrial Production Decreases
When the bigger part of the world announced quarantine, no one expected that it would last so long. Today we see a 40% decline in new vehicle sales in the world. In the USA, such companies as Ford, General Motors, and Fiat-Chrysler shut down all their factories. Also, we can’t forget about the competition with electric cars. Generally, a decrease in sales affects every aspect of the manufacturing economy. Today, we witness a decline in sales of almost every product worldwide.
COVID-19 also made a huge impact on Sports. As you know, Sports also closely related to tourism, light industry, and television. Due to the coronavirus pandemic, the majority of sports events were postponed or even canceled all around the world. For example, the 2020 Summer Olympics in Tokyo, Japan. This event was postponed to the next year. Due to this fact, many companies incur significant losses.
- Small business
Unfortunately, experts expect that small businesses may not be able to survive without help from the government. The social effect of the impact of coronavirus pandemic on small businesses will be the biggest one. In our country, approximately 1/3 of the population are employed in small businesses. Therefore, the bankruptcy of 30 percent of small businesses in our country will significantly increase unemployment. That would deliver a serious blow to the middle class.
Is everything as bad as it looks?
Without a single doubt, the impact of COVID-19 on the World Economy is terrible. However, it doesn’t mean that it will destroy it completely. Even though all sectors of the economy are affected by the outbreak, we can see growth in certain ones. For example, delivery services are showing constant growth, and the same applies to online services. In turn, manufacturers paid more attention to the automation of industrial manufacturing. This may lead to a huge increase in the production of industrial robots and electronics. Generally, the outbreak of COVID-19 is not the first and definitely not the last crisis that we will encounter.