Coronavirus or commonly know as COVID-19 is obviously a very dangerous virus, who has killed more than 5,300 people and infected more than 129,000 peoples around the world. The virus spread more than 105 countries until now. While the death rate is still less than 2 percent of those infected die from the virus. This Virus impact on human very negatively. However, in this article, we are looking at what it’s economic impacts in the world. Coronavirus affects many countries economy like the USA, China, Japan, Italy, and India are facing the economy slow down. If you look at the USA and China stock markets they continue going down. The reason may be the US-China trade war but you can’t ignore Coronavirus. China was the biggest exporter in the world many countries trade with China and depend on their exports. If you look Chinese stock market (Shanghai Stock Exchange) also facing Recession due to Coronavirus. China’s GDP will perhaps suffer poorly in the first quarter of 2020. China makes up about 17 percent of the global economy.
Coronavirus Impact On Global Economy
The Stock market in the US and around the world are already facing slow down due to coronavirus and the US-China trade war. In last month the USA stock market NASDAQ fall almost 7% this is a huge point drop. The US investor loses billions of dollars in just one month. Trump Government so far takes some steps to hand the situation. The US Senate passes an $8.3 billion emergency coronavirus bill for vaccine research and buying coronavirus testing kits. Morgan Stanley already forecasts the US GDP growth expecting to fall by 2.3% before recovering to 3.1% in the following six months, boosted by incentive from governments and central banks.
China’s largest stock market Shanghai Stock Exchange falling approx 2 percent makes the worst month in chine history. All major manufacturing company remains close in china that’s hit the Chinese economy so badly. If the Chinese business rate stays at 20 of normal rates the effects on the USA’s growth will be big. A company like Apple manufacturing based in China, for now, close due to coronavirus. Microsoft also complaining of insufficient computer hardware. In china more, than 17 banks are shut down their operations Due to coronavirus. Company and investors withdraw their money from china and sift there new manufacturing hub in other Asian countries. Many companies in the tourism and aviation industries have reported a loss due to a travel ban.
Coronavirus is forecast Could Cost the Global Economy $2.7 Trillion. Analysts claim the fast-spreading deadly virus could also be a wake-up call for countries that are too heavily reliant on China. The virus’s most frightening impact is perhaps on the world economy with oxford economists warning it could knock 3 percent of global growth this year. GCC (Gulf Cooperation Council) economies are particularly exposed to leading airlines like Emirates, Etihad Airways, and flydubai restricting travel and flights.
The virus which in fact came just a few months after the research by Colliers International predicted the number of Chinese tourists traveling to the GCC would increase by 54 percent from 1.4 million in 2018 to 2.2 million in 2023. The UAE where Chinese visitors are currently the second and fourth highest ranked source markets for Abu Dhabi and Dubai respectively may be the hardest hit. Chinese tourists are also the world’s highest spender while traveling abroad with total adventure and tourism expenditure reaching $277 billion in 2018 according to colleague’s data. They were expected to generate an estimated $3.48 billion in travel and tourism revenue by 2023 which by the way is an increase of 71 percent when compared with figures from 2018.
Coronavirus Emergency Bill
On Thursday the Senate passed an $8.3 billion emergency funding bill to combat the Outbreak of the deadly coronavirus. In the USA more than 1,629 total cases and Total deaths are 41 until now confirmed. Washington and New York have been the hardest-hit state in the country. The emergency funding bill already signed by President Donald Trump in the white house. Only two Republican Senators voted against the subsidiary aid bill. The $8.3 billion emergency funding Bill cruised through the House a day sooner in a 415-2 vote. The Senate leader agreed on the bill.
Here’s how the $8.3 billion measures break’s down:
- More than $3 billion dedicated to the research and development of vaccines, as well as therapeutics and diagnostics.
- $2.2 billion in public health funding to aid in prevention, preparedness and response efforts.
- Nearly $1 billion will go toward for procurement of pharmaceuticals and medical supplies.
- $1.25 billion to help protect Americans who living oversea from the coronavirus.
- $435 million to support health systems overseas to prevent, prepare, and respond to the coronavirus.
- $300 million to respond to humanitarian needs.
- $61 million to facilitate the development and review of medical countermeasures to keep up with potential shortages.
W.H.O Declared Coronavirus Become a Pandemic
The virus now reaching at least 105 countries and territories infecting more than 129,000 and killing more than 5,300. The World Health Organization’s saying the threat of a pandemic has become very real. But it also said it would be the first pandemic in history that could be controlled. Director-general dr. Ted Rose noting the actions of governments businesses communities and individuals can make a difference and we are seeing more stark actions being taken around the globe. In Italy now the hardest-hit country outside China a lockdown extended to all of its 60 million citizens. There is now a decline in new cases being reported from South Korea.
“We’re encouraged that Italy is taking some aggressive measures to contain its epidemic, and we hope that those measures prove effective in the coming few days. Let hope to be the antidote to fear. Let solidarity be the antidote to blame. Let our shared humanity be the antidote to our shared threat,” said Tedros Adhanom Ghebreyesus, the W.H.O.’s director-general.
Some epidemiologists warning the USA is not taking the virus seriously enough. The University of Minnesota’s dr. Mike Osterholm said on Squawk Box this morning. The country is responding as if the virus is a quote DC blizzard that will pass in a few days. He thinks in fact we’re entering a coronavirus winter and were only in the first weeks. The CDC yesterday stepping up its warnings particularly to high-risk groups older people and those with underlying health conditions. Meanwhile, Vice President Mike Pence plans to meet with executives in the health insurance industry. Many have said the waive co-pays for coronavirus testing and are expanding access to telemedicine.
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