Coronavirus…What will happen next?
As China is a major economy and a manufacturing hub, the viral outbreak will cause a major destabilizing threat to the global economy.
The global stock markets fell on mid February 2020, due to a significant rise in the number of Coronavirus cases outside of China.
The monetary impact on the travel and trade industry cannot be estimated, as the economic loss gets bigger every day. But it is likely to be billions, and increasing.
The new economic crisis associated with the coronavirus global pandemic, will have a wide- ranging and severe impacts upon the financial markets, including the commodity, bond and stock markets.
The major events included the Russia- Saudi Arabia oil price war, that concluded into a collapse of crude oil prices and a stock market crash in March 2020.
Big American companies such as Apple, Microsoft and Mastercard have stoped producing their products in the Chinese factories, at the moment.
What is really needed, are fiscal measures to save companies and banks from bankruptcy. This way they can recover quickly once the pandemic is over and are not forced to fire their employees due to the lack of income.
Long- term impacts.
One of the impacts this pandemic could cause, is a revolution in working from home, as big and small companies have implemented telecommuting arrangements for their employees, in order to prevent the virus from spreading even more. This impact cannot be seen only as a negative one, as it has a lot of benefits for the employees.
There have been many theories stipulating that globalization could be in danger by the prolonged global health crisis. Supply chains have been interrupted due to their reliance on the Chinese economy, and this one is being questioned.
This pandemic, is said to have mixed effects on the fight against climate change. Reductions in the industrial and transportation activities hace reduces significantly the emissions, in the short- term. But this emissions are expected to rebound following a possible recession. The world’s clean energy transition may have to be slowed down.