The outbreak of the Coronavirus is definitely a human tragedy. The pandemic has affected about 175 nations all around the globe. Till date, there are a whopping 735,000 COVID-19 positive cases, and 35,000 unfortunate people have succumbed to death. The medical world is absolutely clueless as to what can be the cure for this devastating virus. By far, our scientific knowledge has not been of any use in procuring a vaccination for COVID-19.
Since the deadly virus can spread by mean of touch and close contact, hence to break the chain of contamination, health experts and government authorities across the world are promoting the idea of social distancing. People are advised to stay inside their home and keep their hands sanitised and also avoid touching their face, mouth, nose and eyes.
Impact of COVID-19 on different sectors:
Several countries, including India, has gone under complete lockdown to avoid spreading of Corona Virus. COVID-19 has definitely affected the health sector on a global scale. But it has brought the whole world to a standstill.
- The global economy is crashing down. The stock market is the witness of the inevitable economic loss. The world is entering into a recession period.
- The fashion industry has taken a back seat. All the brick and mortar shops are shut down to avoid public gathering, and the online portals too are not getting many consumers as people are not simply in the mood of shopping. The fashion business is going at a loss even after offering discounts of up to 70% on major brands like Adidas, GAP and so on.
- A severe food crisis is looming around, and the global food supply chain is badly disrupted. Supply of essential goods and commodities is much lower as compared to the sky-rocketing demand. People are resorting to panic buying. They are building up stocks in case of some unforeseen emergencies. As a result of this indiscriminate hoarding, prices are going up exceedingly.
- The tourism sector, too, is shaken by the outbreak of the Corona Virus. About 50 million people involved in this sector globally are at risk of losing their jobs. Trips had been cancelled. Flights and cruise ships are suffering huge losses.
World history of pandemic:
If we look at world history, a pandemic had always affected the global business badly. The US and European business were utterly crushed during the 1918 influenza pandemic, popularly known as the Spanish Flu. The exact loss is still beyond comprehension. But according to the researchers, the US-based businesses suffered an overall economic loss in double-digit percentage. Entertainment sector and the service-providing sector were among the worst-hit businesses. Corona Virus too is creating ripples in the worldwide economy, and if we are to believe the researchers, this time the loss is about $1Tn.
Impact of COVID-19 on global business:
This time, the impact of COVID-19 on the Indian economy as well as the world economy is not just limited to a few sectors. The imminent break down is evident across all the economic stakeholders. Both the blue-collar, as well as the white-collar sectors, are grappling with the implications of the Corona Virus. While the Indian venture capital activity is getting exceptionally slow because no investor meetings are taking place owing to social distancing and self-quarantine.
The six major stock exchanges across the globe are experiencing an average decline of 26%. The supply and demand chain both are poorly affected by COVID-19. Owing to this, major industry leaders are predicting a lower revenue for the FY20. The investor sentiment right now is extremely pessimistic, and there is a huge sense of panic in the market.When the whole world is going through uncertainty, investors are choosing to invest in safer options. Gold is the safest of all investment, and hence the price of international gold is rising rapidly.
Some alterations are even taking place in workplace management. Businesses all around the world are taking preventive measures in order to keep minimum physical interaction. Hence, the concept of work from home, adoption of compulsory sick leave policy, embracing enterprise tech products are getting more popular.
COVID-19 is ravaging the world in multiple ways. It is definitely a bad phase which we can hope will pass soon. Being patient and calm is the need of the hour.