One of the most trending topics of conversation in 2020 is coronavirus. This pandemic was started with Wuhan in China and spread to 140+ countries. According to studies, this would affect more than 5 million businesses worldwide. The Coronavirus Impact on Economy forecasted around the world has been dragged down already because of the such pandemic effect. This pandemic is monumental event whose extensive consequences we can begin to imagine today. The two most important industries might face drastic change is tourism and supply- chain.
Disruption in Supply Chain Industry
Coronavirus Impact on Economy is causing remarkable dislocation to global supply chain. Major supply chain corporate companies of tire 1 or tire 2 channels depends on China one way or another. And we have heard people say, the biggest companies like Microsoft couldn’t make enough products in factories because of shortage in men power and geological travel boundaries. If they can’t get your products to market, what people would do? Evidently, People are more anxious for dearth of basic household items. This chaos turned into stocking up of long life food and other primary used products like toilet paper resulted in unsettling market and causing operational disruptions to the industries.
In the United States, demands of various products like face masks, hand sanitiser, oat milk, toilet paper, water, thermometers, and a variety of snacks has been sky-rocketed. And their prices have been surged because of the imbalance of global supply chain.
Airlines Industries suffers most
Airlines industries plunged down and its not going up anytime sooner, many airlines have already cancelled their frequency and few domestic airlines completely shut down their operations in many regions. Qantas chief executive Alan Joyce warned that many airlines could collapse in the face of the ongoing coronavirus crisis.
The coronavirus outbreak has created traveller chaos, leaving many people either locked down abroad or frustrated and confused about their travel plans due to cancelled flights or suspended routes to and from coronavirus-affected countries. Customers on social media blaming airlines for cancelling their flights without offering any information on refunds or rebooking flights options.
Coronavirus threatens the local business
Local Shops and restaurants are dealing with the harsh realities. While, small and medium-size business are being hit particularly hard as foot traffic dwindles. People are bulking buying through online shopping sites, so in no time there will be high increase in online traffic for business running online store or web business. Report suggest leading online shopping website sales grew up to 200% in last two month. If your business is still not online, most likely you will be out of business sooner or later.
According to the recent survey, 35% of businesses across the globe expect a moderate to significant impact on their revenue. And a similar number (36%) expect a moderate to high impact on their supply chain. When it comes to taking precautionary measures for an economic slowdown, it is slightly higher than in the U.S. with 57% of businesses.
Online Streaming Service is booming
First China announce the Wuhan and other cities in Hubei Provenance locked down due to outbreak of coronavirus, then recently Italy has announced they have locked down entire nation and its 600 million people due to increase in number of deaths from coronavirus. While more and more areas are being put under lockdown, we can see there a boost in online streaming services as well as traditional TV viewership. People are getting boredom at home and spending more time on watching Netflix and Stan like online streaming services.
Also, due to school shutdowns average kid mobile usage time also raised from last 2 month. Spending more time in downloading games and paying it for hours. Average weekly downloads jumped 80% in the first three weeks of February in comparison to popular weekly download for the whole of 2019, according to App Annie.
According to recent study, more than 30% of people admitted they have gained weight during coronavirus lockdown. Spending more time with electronics could play vital role in your life style. Make sure you take advantage of technology you’re using for betterment of your health.
Work from Home is a new normal
To minimise human-to-human contact, companies are taking serious actions and reorganising their working policies. According to recent studies, more than a million business forced to adopt the work from home culture first time. Companies foresee potential opportunity to develop technology that could automate tasks with minimal human interface.
Google already cancelled an internal marketing and sales meeting that would have seen thousands of employees gather in Las Vegas. Also, as much as 8000 Google employees worked from home in Ireland as one of their individual came down with flu-like symptoms as a precautionary measurement.
This is not the first-time world have faced the crises. We have had trade war and so many nonpolitical events however, this is the first time, the production have completely stopped because of quarantine. Therefore, it goes without saying, the Coronavirus Impact on Economy will change the world.