What did you actually plan for the summer of 2020, because clearly someone else had planned out something for us. Solo trips, visiting places, 18th birthday celebrations? None of us expected that we would be sitting at home, watching the news and waiting for our honourable prime minister to just extend the lockdown for one more month!
A virus in the size of an atom which can’t even be seen by the naked eye is making 753.04 crores (as per 2017 data) of people just sit at home. Isn’t this really incredible?
So what is this corona virus? -Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered virus. The COVID-19 virus spreads primarily through droplets of saliva or discharge from the nose when an infected person coughs or sneezes. This has caused an economic impact globally. The coronavirus outbreak, which originated in China, has infected more than 5,50,000 people. Its spread has left businesses around the world counting costs. Globally, the coronavirus shock is severe even compared to the Great Financial Crisis in 2007–08.
Global shares take a hit
Big shifts in stock markets, where shares in companies are bought and sold, can affect many investments, pensions or individual savings accounts (ISAs).
Investors fear, the spread of the coronavirus will destroy economic growth and that the government action may not be enough to stop the decline. In the United
States, the number of people filing for unemployment hit a high record, signalling an end to a decade of expansion for one of the world's largest economies.
Travel – the hardest hit
The travel industry has been badly damaged, with airlines cutting flights and tourists cancelling business trips and holidays. Governments around the world have introduced travel restrictions trying to contain the virus spread. In the US, the Trump administration has banned travellers from European airports from entering the US. Data from the flight tracking service Flight Radar 24 shows that the number of flights globally has taken a huge hit.
Consumers stockpiling food
Supermarkets and online delivery services have reported a huge growth in demand as customers stockpile goods such as toilet paper, rice and orange juice as the pandemic escalates. The widespread stockpiling in cities from the Maghreb (N.W Africa) to Manila by consumers looking to ride out the coronavirus pandemic has driven up grain prices, pushing food security up the agenda both for food-exporting countries and the nations that rely on them.
Impact on India (A general view)
As the commercial centres are closed down, it means people are not spending. When people don’t spend, it means the government is not getting its share of taxes and the owners are not earning profits. And these owners/corporations, with no profits, would be bound to lay off staff or resort to pay cuts. (Indigo has already cut salaries). Also there are a lot of people in the unorganised sector, whose daily income is based on the above mentioned businesses, for example auto or cab drivers, food stallers, hawkers etc have been earning a meagre amount, close to almost nothing. So these people who have had salary cuts, lost jobs etc would take a long time to recover and resume their normal activities, which means the circle of less consumption and demand continues. This is going to have a spill over effect in finance and equity markets. Stock markets are not showing any good signs due to loss of confidence among investors. Rating agencies are cutting down the county’s GDP growth forecasts. All of these, including the selling of shares by investors has further decreased the value of the Indian Rupee. For the first time, it is more than Rs.75 per USD. Today’s economic activities are hardly localised. For example a product marketed by a US company in a store in India, may be manufactured in China, with spare parts coming from South Korea. So in a way, when this global value chain is impacted, India also has to face the brunt.
So, this is how economically corona has affected the globe. But don’t worry we as a world together are going to fight it back in no time. Solo trips, visiting places is on! Sorry, 18th birthdays can’t be celebrated next year, but you all can celebrate your birthdays in unique way from the others without the same old lunch parties and stuff.
So, stay at home and stay safe :)
