How the Issue of Coronavirus Affects the Economy

Infectious diseases are one of the leading causes of deaths globally. In most of the industrialized nations, infectious disease ranks after heart disease and cancer as the leading cause of mortality. Despite the significant developments in pharmaceuticals, the number of human beings affected by the infectious illnesses keep increasing as a result of increased travels and trades, emergence of new and resurgent pathogens, larger and denser cities, inappropriate use of antibiotic drugs, and changes in human behaviour. One of the infectious diseases, which is currently affecting most economies world-wide is the Corona virus also known as COVID-19. The disease has significantly affected the economy in many different ways and all industries that boost growth and development of the economy have been touched in one way or the other. Great companies like Visit Website that offer economy writing services to their clients are constantly conducting research on some of the impacts of the virus in society and ensuring to keep the information flowing. Information is a powerful tool and the writers are always on the lookout for any new developments that can help the readers. 

The outbreak of the illness has caused a lot of human suffering as well as a major economic disruption. Focusing on China, the efforts to contain the disease have resulted in the widespread restrictions and quarantines on travel and labour mobility, which in turn has resulted in unplanned delays and cutbacks more so in sectors offering services. These measures have resulted in the contraction of a sizable output. The subsequent spread of illnesses in other countries such as Italy and Korea have let to the introduction of containment measures such as quarantine and the closure of borders. In the United Kingdom, the spread of Coronavirus has caused adverse effects such as decline in business travels as well as international tourism, weaker demand for imported goods and services, and disruption of global supply chains. All these factors combined have had a negative impact on the economic growth of the regions since most of the resources that were initially dedicated to growth have been re-directed towards combating the virus. Most of the businesses have also been closed down to reduce the spread of the virus through human to human contact. As each day passes, the situation seems to be getting worse and the economy is suffering as a result. 

It is generally known that China’s economy is one of the most affected economies globally. On a similar note, economic indicators show that the Chinese economy has been severely affected by the disease outbreak. The negative impact on the economy of the country is having diverse global implications. The economy of the country is substantially larger as well as more interconnected with different countries worldwide. Approximately more than two-thirds of the total countries in the world have China as one of their best trading partners. Most economies are experiencing a reduction in the demand of goods and services by the Chinese hence a decline in the access of various commodities through the use of supply chains. 

The global economic impact from the outbreak of the disease is evident in the financial markets. Whereas there is a substantial fall in the stock market around the world, the spread of corporate bonds have also widened in recent weeks. For instance, the value of an Australian dollar has declined by six percent as compared to its initial trade weight in January. The financial regulators are constantly monitoring the stock markets and there is a regular communication between the council of financial regulators and the domestic agencies. Luckily, the financial system of Australia is still strong and resilient. Following the global financial crisis, there have been implementations of various reforms, which have in turn made significant increase in the stabilization of the financial systems. Some of these reforms include; strengthening the crisis management powers of APRA, strengthening the ability of RBA’s to provide various institutions with emergency funding, and increasing the quality as well as quantity of bank`s capital. 

Although there are no official sources of information indicating the rate at which Coronavirus has spread in different parts of the world, most analysts believe that the outbreak of the disease has impacted on the economy of most nations. Some of the sectors that are suffering the most during this period include the financial industry, entertainment, hospitality, and tourism industries. There is a massive loss of revenues in both the food and retail industry. Apparently, not all the retail industries have experienced losses. Reports from Kantar, which is an International Consulting Company, indicate that most of the enterprises, which rely on shops and physical space such as bars, gyms, movie centres, restaurants, traditional food sellers, and supermarkets have suffered significant losses while online markets have not been adversely affected. 

The travel ban, massive quarantine, and the widespread of the disease have also had an adverse effect on the confidence of both the international companies and domestic businesses. Most business owners claim that it would be difficult and close to impossible to sustain their businesses for even three months with the available cash in hand. In addition, other business owners agree that they are more likely to experience a loss of approximately 30% this year. The prices of oil have declined by approximately 50% as compared to how it was in January as a result of the decrease in demand. As a response to the outbreak of the Coronavirus, the government of most countries are putting in place measures to support not only the economy, but also the health systems. The government is providing support to the people and sectors who have been most affected by the pandemic. Currently, there is a considerable uncertainty of the economic implication of the disease outbreak in the oncoming weeks or months. There is a likelihood that the economic impact will be significant. There are many potential ways through which the virus can spread hence affecting the ability of people to work. 

Most fiscal responses in a number of key economies such as Singapore, Italy, China, and South Korea are focused on providing support to businesses during this tough economic period. Some of the ways in which the government is offering support to the businesses include; training, cutting tax, restructuring loans. Similar to other economies around the world, the economy of Australia is also experiencing the negative impact from the outbreak of Coronavirus. There has been a significant decline in the arrival of students and tourists in the country as well as in the demand for premium agricultural products. In essence, most economies have negatively been affected by the disease outbreak. Apparently, there are no solutions, which have been found to stop the virus from spreading. If a solution to the disease outbreak is not found, there is a possibility that the economies of most countries will paralyse.