Corona virus affects the economy in many ways which directly or indirectly affects people. The deadly virus originated in Wuhan, China in late December. People thought of it as a regular virus until it started taking lives.
During the outbreak of the virus, people had many questions. The most important question is “how can we stop the virus from spreading.” The answer to that question is ‘we do not know’ as of now. Scientists have said that it will take them at least 24 months to discover the cure.
This leads us to the second most important question, “How fast it will spread?” Also, how it will affect the businesses & the world economy.
How Corona Virus Affects the Economy Negatively
After the virus originated in Wuhan, it disrupted China & its economy completely. China has the highest number of deaths by the Corona Virus in the world followed by Italy. The virus has already taken over 3,000 lives there.
The Chinese economy is the 2nd largest economy in the world. China is considered as the world’s factory for the manufacturing of various goods. Any effect on the Chinese economy affects the global economy drastically.
Car sales in China have already fallen by over 80% in the last quarter. This is the sharpest fall in the last 2 decades China has seen. Local people have stopped traveling which is affecting the travel & tourism Industry.
How Corona Virus Affects the Economy Positively
Under the deadly virus, the world looks very gloomy. Yet some companies have benefited from the aftereffects. The Medical & tech Industry has been booming like never before.
People are buying more medicines because they are afraid. Many people have started using face masks for protecting themselves. The price of a few select medicines has gone up over 5 times due to the high demand.
People also have stopped traveling. This might lead to loss of the travel industry but the tech industry benefits a lot from this. People have started using video conferencing rather than doing physical meetings.
There are severe consequences, but few have turned this epidemic to an opportunity. Experts believe that the virus can be controlled in the next 24 months. Once under control, there can be a new set of opportunities for humanity.
There are consequences the world will face if the virus is not taken under control in time. Economies will suffer and countries might go into recession. Businesses will be not making money and people will lose their jobs.
Though there are negative sides to this epidemic, humanity must focus on the positives. Many businesses are shutting shops but some businesses are booming. Humans have faced bigger challenges in history & this is nothing in comparison.
We hope the best one can do is take precautions to be safe and use the opportunity the deadly virus has presented.