It is impossible for you to not have heard about Coronavirus (COVID-19). It has spread over the globe and gradually covering traversing one country to another. Now, Coronavirus is not only affecting the people but it has become a threat to the economies too.
Not only China, but countries like India, Singapore, the US, and another 21 countries have had citizens with positive signs of the virus. And the number of affected is pacing and going up and up, as the day passes.
According to international reports, the virus has infected approximately 40,000 people and killed over 1000 people. Subsequently, this vast spread of the virus has created a ripple effect, not only health-wise but in the economies of many named countries as well. And the top country that is most affected is, well! of course, China.
China is an indispensable part of global businesses for they are one major manufacturing hub for most of the many items that we use on a daily basis. The country supports the export and import, assembly and manufacturing of goods, which forms the backbone of various industries across the world.
Artifacts, artistry, food products, technical products, and clothing raw materials are included as the main components in their trade. Also, Beijing which is both national and economic capital of China has become a major player in the sector of electronic widgets, automobiles, and technology.
Quite a number of international businesses had open their factories on the mainland due to these facts only and are getting threatened by Coronavirus.
“World’s economy could grow at its slowest rate since 2009 this year due to the global public health emergency”, as per the Organisation for Economic Cooperation and Development (OECD).
Now, amongst all of them, Tourism has been the most affected industry. According to statistics, there were 150 million people in 2018 who’ve traveled to and from China. In contrast to this, the numbers have declined heavily due to the virus attack.
Airlines such as Royal Caribbean, Cathay Pacific, and British Airways IAG are forced to shut down their route for travel around parts of Mainland China.
Also, Big conglomerates like Disney, McDonald’s, Hyundai, Honda, and other famous brands like Nike have been relying on China’s efficient factories. But due to the corona epidemic, they have been facing downtime in production, supply, and whatnot.
Disney’s theme park revenue is expected to be shot down by $175 million by the end of the year for there will be a lot fewer foreign tourists visit the theme park.
Factories, Shoe companies, tech companies, and even theme parks, every other thing is getting affected by the Coronavirus and will add up to the fiscal deficit.
Not only travel, but the drug industry has also been prominently affected by this. GSK, Britain’s largest drug-producing company was forced to shut down their offices.
This swelled up the global manufacturing growth of the company. Currently, 3000 GSK employees are working from their homes. Additionally, food and beverage outlets like Starbucks closed down half of their cafes in China, cutting their revenues and witnessing a downward trend.
Numerous events and theme-based conferences are postponed as well. This was due to a major amount of flight cancellations or the individuals denying to attend the events for who would want to get affected by the virus for attending an event.
Fearing the epidemic, entertainment company IMAX postponed 5 of their film release in China. Many events including the National Association of Travel Agents Singapore, ISPO Beijing sports exhibition and art events ‘Art Basel’ and Art Central have been canceled due to novel coronavirus outbreak.
China’s government has not been saying much in response to the question from all over the world and they are maintaining a secretive approach to handling the epidemic. This non-existent approach has led to people dying all over the world and let’s hope something comes up before its too late.