Coronavirus on Global Economy are here. Coronavirus on global economy will hit eventually. The covid-19 virus known as the Coronavirus is a deadly virus that can cause a severe impact on your health but not only health Coronavirus on World Economy as well. The virus will be responsible for another thing that is the devastation on the global economy. The implications will be severe, and you will never know what it can cause. In here we will discuss what to expect from this Coronavirus.
Like the 2008 economic impact, the consequences will be severed since China, and the United States both are at a cold war as well. Let’s focus on the economic facts that can expect from the coronavirus outbreak.
1. The supply chains will be stopped as the coronavirus threat increases
As we already know, some countries have already closed their borders for the supply of goods. In addition to the hand even exporting from their own country is also closed. It will have a severe impact on the economy. Cause no country can depend without the raw material supply of oil or any goods. Because of that reason, international trade stopping means a sever issue. If a country like Bangladesh, which depends on its garments that sent to USA markets, will be stuck with its production. Even a company like Amazon, Alibaba will have an impact on its overall sales.
Yet the supply chains work most of the countries will take so much time to have proper GDP growth. We cannot predict when it will be okay, but surely it won’t be right. In this sort of instance any operational excellence or engineering management method will not work out.
2. The current jobs roles will vanish
Having a job is essential to sustain life. Yes, you can earn only. But still, most of the people want to have a career in their respective field of study. With the Outbreak of this Virus, companies will tend to go for a significant job cut cause most of the company’s business is at risk and they will not be able to meet the targets that they have planned. Because of this reason, it is inevitable a financial crisis to happen due to Coronavirus .
Some company’s business depends on the other company’s business. As an example, if we take ERP industries, the ERP company’s revenue generates from the other company that they sell the product. If the ERP buying company goes down, the ERP company will go down. That means the ERP company will not be able to provide the salaries to its employers as well. This is the major issue we will be facing due to the linking.
Companies will not be able to carry out the financial burden further by creating more full-time jobs. They will have to look for more temporary workers and offer more internships for graduates
3. Global superpowers will face recession
We know united states still dominates the global economy, but this Coronavirus impact will be a thing that it may take it tolls of USA as well. Currently, we can see Chinese productions are not getting out of the country, and the Americans are also facing a major set back in fortune 500 companies. The developing countries like India will be facing the same issue. Not like the 2008 global real estate market crisis, this will be another great depression that happened before world war 2.
GDP growth will be affected as well, and the value of the currency may down significantly in countries like Australia.
4. Countries that have long terms loans will suffer
Most of the developing countries invest immensely in their infrastructure by taking colossal loans from developed countries. Most of this loan comes with USD, and once you need to pay these debts if the countries treasuries do not have enough money to pay them, severe consequences will be there. The Coronavirus will make this worse. As we already know, China has been using this strategy against most of the African countries, and eventually, some of those African countries had to yield to the Chinese. This same scenario will happen to those countries that have high debt. If they are to pay them, they will have to lift their taxes and take rigours actions to settle their bills. The general public will feel the pressure and will suffer in the long term
5. Youth unemployment will be inevitable due to coronavirus
The future graduates or the fresh graduates who are yet to find any employment opportunities will get stuck. Because now with the current situation, even a multinational company cannot facilitate new graduate programs to the youth. Even the Coronavirus vanishes from the planet earth, and the Job market will take some time to settle.
As we know, unemployment youth means an economic burden on society. More the companies try to avoid any losses; more jobs will be lost. On the other hand, internships will be there, but everyone’s dream is to get that full-time job to get settled and have a balanced life. I believe the younger generation should more focus on the online earnings and trade jobs rather than searching for the 9-hour office-type jobs if they do not get their dream job. Cause the time factor is precious.
6. People will trap on debts
Many people live the paycheck to paycheck strategy to find the day end needs. Since there are cities under lockdown and it is a bit risky to use ATMs. The general public seduces to using more of their credit card money. Since Coronavirus on World Economy will be bigger thing the governments around the world may have to find different ways
In short term credit cards are good, but with the Coronavirus is becoming a global epidemic and with the global economic crisis, if you use more credit cards, you will be in a debt trap surely. Unfortunately, with the lifestyle, most of the people have, this is something that cannot avoid. But if you need to have a debt-free life after this covid-19 outbreak, try to use a debit card and save some money.
Where are we heading due to coronavirus on global economy crisis
It was not a global epidemic but recently WHO has announced it to be a deadly one. Now we will have to wait and see the consequences of this devastation to the GDP growth, Economic growth of every country. Inevitably sings of a recession now occurs as the world is in a locked-down situation. Industries need to give working from home facilities if possible as an agile way.
The central banks throughout the world will have to take the decision to make their economy balance; otherwise, a great depression will be unstoppable.