Since the WHO (World Health Organization) declared the coronavirus outbreak a public health emergency of international concern in January, it has spread worldwide. The WHO has raised its global risk outlook and announced more new cases outside of China than within for the first time on February 26th. Nowadays the world economy is at the bottom, GDP falling sharply.
Data from the China Association of Automobile Manufacturers (CAAM) has revealed that auto sector sales decreased by 18% in January, and 20% in February. There are many industries like tourism, shipping, automobile, manufacture, electronics, pharmaceutical expected to hit by COVID-19. Supply chain distributor is expected to affect many linked market and industries.
Here I am going to show you the impact of coronavirus in various field:
Global Stock Market:
Worldwide stock markets saw sharp falls because of the economic impact of the coronavirus. The quick spread of the coronavirus has become one of the most significant issues in the global economy and financial markets. The last week of February was worst for the stock market, and it faces a significant economic crisis since the year 2008.
This virus has hit China’s manufacturing sector. Followed by China, many country slowdowns their business which is the economy is closely linked to China. Several analysts said China is taking longer than expected to resume manufacture activity. Economists noted, due to the rapid spread of coronavirus across the world, global manufacture activity downcast for a long time.
COVID-19 also breaks worldwide services industries as reduced customers spending in retail stores, restaurants, etc. According to Markit, not only China but In the US service sector, and the world’s largest service sector also slowdown in February. The reason behind the contraction of the US service sector is that the new business from outer countries pauses their order due to global economic uncertainty and COVIOD-19 outbreak.
Decreased in the global economy, lowered the demand of the fuel, resultant fuel price is reduced.COVID-19 outbreak majorly impacted on slowdown China’s market and weakened the finical market. Indirectly cut fuel use and prise globally.
Selling Off in Stock market:
Sharply falling down the stock market because of fear surrounding the coronavirus at the global platform. So investor thinks twice to bought down stock prices. This graph shows the changes in the significant stock index.
The World Travel and Tourism Council (WTTC) says up to 50 million jobs could be lost because of the COVID-19 and the travel sector could shrink by up to 25% in 2020. The travel industry has a big hit due to its travel restriction and fear of COVID-19. Many tourists cancelled their trips for tourism and business purpose. Many international events are cancelled due to coronavirus, and the cancellations of flight have been increases. So the travel industry had a big hit.
The gold investment is the one type of safest investment, but due to the uncertainty of the market, the price of gold has been sharply increased. Now the price of gold is at its peak. Its price reaches on top of the seven-year high of $1,682.35 per ounce in February.
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