In: Economics
What are the economic impacts of coronavirus?Please essay type 500-600 word
The COVID-19 pandemic has had far-reaching consequences beyond the spread of the disease itself and efforts to quarantine it. As the SARS-CoV-2 virus has spread around the globe, concerns have shifted from supply side manufacturing issues to decreased business in the services sector. The pandemic caused the largest global recession in history, with more than a third of the global population at the time being placed on lockdown. Supply shortages are expected to affect a number of sectors due to panic buying, increased usage of goods to fight the pandemic, and disruption to factories and logistics in mainland China. There have been instances of price gouging. There have been widespread reports of shortages of pharmaceuticals, with many areas seeing panic buying and cosequent shortages of food and other essential grocery items. The technology industry, in particular, has been warning about delays to shipment of electronic goods. Global stock market fell on 24 February 2020 due to significant rise in the number of COVID-19 cases outside mainland China. By 28 February 2020, stock markets worldwide saw their largest single week declines since the 2008 financial crises. Global stock markets crashed in March 2020, with falls of several percent in the world'' major indices. As the pandemic spreads, global conference and events across technology, fashion and sports are being cancelled or postponed. While the monetary impact on the travel and trade industry is yet to be estimated, it is likely to be in the billions and increasing. Coronavirus recession refers to an economic recession which may happen across the world in 2020 due to the COVID-19 pandemic. Some economists suggest the China's economy may contract for the first time since the 1970's. Caixin's purchasing managers index for the services sector of China's economy fell to 26.5 in February 2020, lowest figure recorded since the survey's advent in 2005, and car sales dropped 86% in China in February. As the coronavirus spreads around the world, the stock markets have experienced their worst crash since 1987. Many countries with large economies, such as Italy and Spain, have enacted quarantine policies. This has led to the disruption of business activities in many economic sectors.