How is Coronavirus Affecting World Economy
How is the Coronavirus affecting the world economy? We all know Coronavirus is affecting the economy of our country and the world. This new pandemic is not only causing harm to the health of the elderly population of this world, but it will also affect everyone financially. This is causing serious damage to our country’s economy, which will directly affect some things such as pensions, nursing, and hospital facilities for senior citizens.
Revenue Declines in Malls, Movies, and Restaurants
Due to the widespread outbreak of the Coronavirus, everything around the world has been severely impacted. The economic, financial, and social behavior of the people has changed drastically and there have been severe impacts on some. People are more cautious in their day-to-day activities since the outbreak of the virus. The amount of time spent outside the house doing various activities has gone down drastically. People have stopped eating out and are avoiding going into public places in hopes of stopping the spread of the virus.
This has lead to a decrease in revenue for entertainment and social gathering places. This is a very important factor in the country’s GDP and this impacts the finances of a country. It again eventually leads to affecting other government policies for older people in the country.
Flights, Cruises, and Travel Losses
Flights and cruises have been undergoing different levels of losses. In the past few weeks, there have been a ton of cases of the virus spreading among cruise ships or in flights as these are some of the closed spaces you cannot escape or isolate yourself.
Olympics and NBA Canceled
Furthermore, as all the major gatherings have been stopped by the government, it has been a huge loss for sports as well. For example, events like the NBA and the Olympics have been canceled, which had been planned for years now. Japan was supposed to host the 2020 Olympics, they had even altered all their travel rules including letting Airbnb enter Japan to make sure they had enough accommodation for the event. Thus, such major changes and the infrastructure modifications are a big chunk of any countries GDP which is all getting canceled as far as the break-even of the money was concerned. This would lead to a major drop in the economy.
Fatal for the Elderly?
Coronavirus could be fatal for the elderly population and this has been leading to some of the compromises which are not in favor of them. The younger generation who is said to have a higher chance of recovering as compared to the old people is given priority. This could lead to a lot of countries helpless when it comes to providing aid to the older generation.
What are Economists saying?
Economists have been predicting the markets to be worse than in 2008. Besides, the recent stock market shows the stats falling below anything in the last three decades, which is a serious concern. This situation is much worse than what politicians and media are been describing it to be.
Sufficient Accommodations Unavailable
In fact, most of the countries are ready for this kind of pandemic financially. We do not have the necessary health care or ICU instruments, such as ventilators. If the outbreak of coronavirus doesn’t stop, the world can suffer a large number of deaths. This could lead to a serious drain in the economy. The economist also predicts this might be the reason for our next recession and unemployment.
Situations like these are indeed affected socially but are also a great hit towards the treasury of any country. Italy is already at its very low, next could be any country and the United States is not an exception.
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