The outbreak of Corona virus or COVID-19 has disturbed the entire world economy. It is essential to be careful of every aspect. It's been around five months, and so many places are still under some form of lock-down. All this is done to prevent the spread of the virus.
The COVID-19 outbreak has negatively affected not only the economies of the world but also financial, religious, social, and political aspects too. With the world's largest and strongest economies, such as the UK, Italy, the US, Japan, China, and France being greatly hit by this invisible enemy.
That's not all. Ever since the virus broke out, the money market of almost every country seems to have taken a downward dip, even though several stimulus programs have been launched over the last few weeks to cushion these economy. Apart from that, millions of people have already lost their jobs. Experts have predicted that the situation is going to worsen in the near future and it's time everyone prepares for the worse. It is going to be tough and consumers will have to dig dipper into their pockets to be able to afford necessities unlike previous with a high probability of a recession worse than the great depression.
The economic watchdogs seem to have come to a consensus that the virus is having a pretty adverse impact on humans than the economy. The loss of human lives is innumerable and rising each day. You can as well assume that the situation is far worse than what it was during WW2 or even the 2008 – 2009 economic downturn
Factors of the virus
Well, the virus is pretty confusing, and the exact impact is still undeniable. Certain characteristics surely help you determine the impact of the virus and how it will grow.
- Asymptomatic cases
There have been numerous cases that are asymptomatic. Middle-aged and older adults have had a massive problem in keeping up with the check, and they only showed mild symptoms. But, we are yet not aware of what percent of cases are asymptomatic.
Asymptomatic people can easily transmit the virus within the incubation period itself. It is mostly due to asymptomatic cases that the epidemic has been transferred at such a tremendous rate.
To date, there is no proof about the virus's seasonality. However, there are chances that the Coronavirus is not seasonal but has existed for a long time. However, the virus has not shown any signs of rapid propagation in colder regions.
China is the only country to have managed the global outbreak properly. This is usually because they assured the lockdown and kept the entire environment safe. However, leading economic countries such as the US and UK were unable to do so. It is for the lack of strong measures that the cases went from thousands to millions in no time.
Other countries such as Africa and India that are densely populated are also prone to community transmission if strong measures aren't implied.
Economic experts have predicted that the global economy's GDP growth would go down by half. Although there are significantly fewer chances of a worldwide recession, it is still very possible.
The global slowdown is going to have a massive impact on the small and midsize businesses. Also, less developed countries would suffer a lot in terms of the economy.
As far as sectors are concerned, the ones to be affected the most due to this global economy would be travel, tourism, and aviation.
In recent times, the aviation sector has experienced a massive downfall in its number of passengers. Since the risk of transmission is high, people are avoiding boarding flights unless extremely urgent. Several aviation companies are also being expected to be victims of bankruptcy.
The demand for consumer goods is decreasing, but others are also being expected to go down. By June, most industries would start functioning as it is expected that the impact of the virus will decrease. But, the oil and gas industry will be severely impacted due to the virus.
Will there be a recession?
Less likely to be so.
The cases are growing with each passing, and the curve is not flattening. However, this is pretty harmful because if the virus grows at this rate, the global slowdown may turn to the recession.
However, the industries are working towards implementing ways and boosting themselves towards recovery. If the businesses fail to achieve recovery, no one can deny recession, and the global GDP growth may fall down to 0.5 percent.
How to keep the business functioning?
Regardless of the size of your business, you need to implement ways to help the business grow. These tips can play an important role in the crisis management sector, thereby helping all businesses.
- Keep your employees safe
COVID-19 has not only impacted people financially and physically but emotionally as well. Everyone is coming across different challenges, and to survive in such a situation becomes tough for many people.
As a result, businesses must help their employees survive in such tough conditions. As owners, you need to implement guidelines that are overwhelming for your employees. Also, make sure to stay in constant touch with your employees to avoid the feeling of unease.
- Stabilize supply chain
Businesses must bring stability in their supply chain to avoid the risk of community transmission. The Chinese businesses have gone back to following a proper model and boosting production. So, different businesses across the world are also bringing about stabilization.
It is essential for businesses from now only to plan how to bring stability in the supply chain system to avoid hoarding due to increased demand. The COVID-19 outbreak has already paved the way for various challenges, and businesses must handle it properly.
- Do not disappear
Who would come back to your business if you just disappear? Even if the customer demand is low, you need to work towards production and stay in constant touch with your customers. People are moving towards online shopping, and you need to proceed with it. As a result, you should work towards investing in online businesses to provide the best quality to your customers.
You need to stay dedicated and strong to your businesses. Supporting your employees and staying in touch with your customers can be one of the best ways to keep the business at bay. While most businesses are fighting the slowdown and fearing recession, taking the right measures will eventually help you stay strong.