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The effect of corona virus has startled the costs of business worldwide. This virus that was initiated from China has now spread all across the world and is affecting men from all spheres of life. The outbreak has affected the people which in return are affecting the global economy. To avoid the spread of the corona virus, business operations are suspended worldwide. It sure seems as havoc on earth at this hour. The present situation has led down to the entire lock downs of the cities. China is known as the world’s second largest economy. Its downfall will result in the ruination of the global economy itself. However, this is not the end but the virus is rapidly spreading to more than 155 countries worldwide worsening the living conditions of each and every country itself.
Effect on the manufacturing industry
The measures of containment are affecting the economy more than the virus itself due to the spread of panic and lack of working heads in various departments. You can also be one of the affected individuals. The department of manufacture and factories in China have devastatingly stopped working and manufacturing goods. These goods are supposed to be transferred to other countries but the outbreak has halted the export and import of products too. A total image of chaos was foreseen but not taking appropriate steps at the right time led us all to this day. According to the statistics of economists, the continuation of the manufacturing industry will take even longer than the anticipation since the virus is unable to be contained within a few individuals and the factories can be shut down for longer than anticipated.
A path towards the recession of world economy
The economy of the entire world seems to be in the path of recession. This was estimated keeping in mind the breakdown of the financial markets worldwide. There is a fine line that draws the difference between the sales of the financial market and the recession of the global economy. According to the statistics, one in three markets in the US are non-recessionary.
One important thing that we all learnt from the containment of China was that the effect of the corona virus can be contained. However, this has to be done on the verge of great economic loss. The financial crisis of 2007-08 was a great setback to the economy but the corona virus has been known to be worse. Considering the prevailing situation, many of you must involve yourselves with either online or short-term business projects to save your families from starving.
https://www.weforum.org/agenda/2020/03/imf-economic-lessons-from-china-fight-against-coronavirus/
Investments in the prevailing circumstances
The World Bank has stated that the companies worldwide are being invested by a total increase of $14 billion for the sake of their financial lagging in the markets. This money is allocated for responding and preventing the spread of corona virus. The national health areas will be aided with this money to settle the patients and to save the one’s from it in the first place. To save the private sector from collapsing the aid of $6 billion was increased with a total of $8 billion making it $14 Billions.
As a consequence of economy collapsing, this money is allocated to finance the trading of clients. All the other sectors that are affected by the effect of corona virus will also be sustained by the government because of being socially cut down on expenses themselves. If you are one of the owners or workers in the tourism industry then you will be able to understand this too. Moreover, individuals have started working from their homes to share their burden with the online clients. The billing and other adjustments will also be made for the residents of the low class.
Government and private sectors will battle altogether!
It will not just be the sole duty of the government to help combat the corona virus but the private sector will also have to play a very significant role in this regard. However, the role of Central Banks and IMF is also very necessary to overcome the prolonged situation carried out in the countries worldwide. If the employees from various departments offer their capabilities to be invested to fight the outbreak, then we will be able to get over this all really soon. The sole economy of China is linked with the global economy by a 17 per cent and a trade accounting of 34 per cent. As a result of China’s dropping economy from 5.9 per cent to 5.4 per cent, the world will also be affected as the global economy will grow by only 3.1 per cent in the year 2020. However, if the ample steps are not taken by the government and private sectors to ensure halting the spread of the virus, then the global economy can even drop to even less than a 2 per cent.
For the times to come under the severe conditions, the costs of oil and interest rates can also worsen for the general public worldwide. The economic health factors of various countries like Asia, etc., will be directly affected because of being directly laid on China. This is because, China accounts for the 50 per cent of the tourist revenues for these countries and even 60 to 90 per cent of their exports depend on China. This will be a huge setback to all the countries that are dependent on China in this regard. However, the governments of several countries are cooperating. In Italy, where there has been a mass havoc by corona virus, the government helped the citizens with the mortgage payments. Likewise, in Canada, the period of the unemployment benefits has been eradicated too.
How to combat the effect?
It is not the best time to be investing in anything closely related to the tourism industry. It can be seen that the tourism dependent countries like Thailand are deeply affected by the prevailing situation. You definitely do not want to suffer in the longer run. Likewise, restaurant related jobs should also be called off in this situation. But the question is that how can the work be continued in these circumstances? It is very simple. The option from working from home is readily accessible to everyone out there. However, do make sure that if you need to step out of the house in the state of emergency then do wear a mask to save yourself from the prevailing havoc.
Many companies can benefit from the idea of video calls to continue their offices; while, most of the other individuals should seek online working services for them. This will keep you busy and make you easily work from home too. Currently, these are the only few ways to earn some good money. Moreover, the government will always comply with the individuals to cut them short on prices and billings. Working together like a community in these circumstances, will help everybody to encounter everything with ease. The public sector travelling is definitely affected due to the cancellation of flights worldwide. However, this gave a rise to the private flying companies who are leading the passengers with ease. Likewise, the conditions vary everywhere in the world and you must not forget to sanitize yourself but also work from home.
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