The coronavirus outbreak, which originated in China, has infected more than 300,000 people. Its spread has left businesses around the world counting costs.
Here’s a precise view of how it is affecting various industries:
- Stakes drop:
Investors fear the spread of the coronavirus will destroy economic growth and that government action may not be enough to stop the decline.
- Slashed interest rates:
Central banks in many countries have cut interest rates. That should, in theory, make borrowing cheaper and encourage spending to boost the economy. The US Federal Reserve and the Bank of England are among those.
- Travel & Tourism extensively lapse:
The travel industry has been badly damaged, with airlines cutting flights and tourists cancelling business trips and holidays. Governments around the world have introduced travel restrictions to try to contain the virus.
- Eat-outs shouting down:
Fear of the virus and government advice to stay at home is also having a devastating impact on hotels and restaurants.
- Years beginning with an industrial decline:
Restrictions have affected the supply chains of big companies such as industrial equipment manufacturer and carmaker. Shops and car dealerships have all reported a fall in demand. Chinese car sales, for example, dropped by 92% during the first half of February. More carmakers, like Tesla or Geely, are now selling cars online as customers stay away from showrooms.
- Even Gold tumbles:
When a crisis hits, investors often choose less risky investments. Gold is traditionally considered a “safe haven” for investment in times of uncertainty. Until March the price of gold increased. But now, with investors increasingly fearful about a global recession, even the price of gold has tumbled.
- Oil at its lowest since June, 2001:
Oil has slumped to its lowest price since June 2001. Investors fear that the global spread of the virus will further hit the global economy and demand for oil. The oil price had already been affected by a row between Opec, the group of oil producers, and Russia. Corona virus is affecting the economy driving the price down further.
- Shrinking economy:
If the economy is growing, that generally means more wealth and more new jobs. It’s measured by looking at the percentage change in gross domestic product, or the value of goods and services produced, typically over three months or a year. The world’s economy could grow at its slowest rate since 2009 this year due to the coronavirus outbreak, according to the Organisation for Economic Cooperation and Development (OECD).