Question

Question: Which sectors of the economy are the worst hit by Corona Pandemic and which sectors may have benefited from the Corona Pandemic? Take one or more countries as examples for your answer. Support your findings with data and analysis as much as possible. Clearly mention the country name(s). Please answer the question in detail. Support your answer with data and references as much as possible. provide references wherever applicable. Use economic terminologies as much as possible.

Answer 1

Ans. A report by the UN conference on Trade and Development has forecast that the global economy may see an impact of $1-2 trillion in 2020. World has changed in the three months since the last update of the World Economic Outlook in January. A rare disaster, a coronavirus pandemic, has resulted in a tragically large number of human lives being lost. April World Oulook projects global growth in 2020 to fall to -3 percent. Countries reliant on tourism, travel, hospitality, and entertainment for their growth are experiencing particularly large disruptions. Emerging market and developing economies face additional challenges with unprecedented reversals in capital flows as global risk appetite wanes,and currency pressure, while coping with weaker health systems, and more limited fiscal space to provide support. Countries and world capital have been put under strict lockdown, bringing a total halt to major industrial production chain. The travel industry has been badly damaged, with airlines trains and cruise ships cutting flights and tourists cancelling business trips and holidays. The global airline industry has said it will need up to US$200 billion in emergency support, and Boeing has called for US$60 billion in assistance or aerospace manufacturers as the international trvel industry bleed cash. The US Travel Association is projecting that close to 5 million travel-related American jobs will be lost. For example all ski resorts in Italy,France, Austria and Switzerland are effectively closed for the season. The oil price crashed, so companies oil reserve are worth less than half that of the start of the year. Due to slowed down of factories all over the world the manufacturing industry goes down. Hundreds of London and New York investment bankers are set to lose rheir jobs amid a slump in deal-making Shares of leading US banks JPMorgan chase, Bank of America and Citigroup are all down more than 30% from January highs. Restrictions have affected the supply chain of big companies such as industrial equipment manufacturer JCB and Nissan. In china vehicle especially car manufacturing dropped by 86% in February. Oil and oil indusrtry has slumped.

As the number of Covid cases mount, the nation urged its citizen to stay at home and practice social distancing,. That's  expected to aid the telecome sector. In january and February, when China-the epicenter of the virus outbreak- was under lockdown, revenue of telecommunications services roses 1.5 percent compared to last year. The growth rate for the first two months of 2020 was the highest in the last 12 months. Mobile data traffic,too, rebounded after declining for 10 straight months, the data showed. Work from home and social distancing are expected to boost data usage by 10-15 percent in the home broadband and mobile space in India, according to Rajiv Sharma, head of equity research and telecome analyst at SBICAP Securities. According to Michael Wade, International institute for management development -  Supermarkets and online delivery services have reported huge growth in demand as customers stockpile goods, such as rice, vegitables, oils, stationery and bakery items. Amzone is adding 100000 new jobs to manage the extra demand. Online grocer Ocado has suspended new orders until it can clear its backlog of deliveries. Pharmaceutical companies are inevitably playing a large role in the crisis. Gilead, which owns the right to treatment drug Remdesivir; Moderna, actively working on a vaccine; Roche, a major supplier of testing kits; and Fujifilm, with existing treatment drug Avigan, are all poised to benefit. Cainiao, Alibaba Group's logistics arm, launched the Green Channel initiative on January 25 in response to the increased demand for protective clothing and medical supplies, especially for front-line medical staff in Hubei province. Videoconferencing start-up Zoom has benifited massively.The companies sales and share price are already up over 50% in 2020.The European Space Agency has registered an impressive fall in poliution across the skies. China are now exporting ventilators, and face masks to the world and benifitting the industry.