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The Virus That Continues To Hold The World Hostage
Movies such as the Contagion have a fascination with pandemics and unidentified viruses threatening human life. The spread of the new coronavirus and the fear it has managed to strike in our minds is no different from that displayed in such movies. However, most of these movies fail to show the real impact of the virus – impact on businesses, trade, and the way economies evolve through such situations. As we struggle to cope with the fear and panic caused, it is important to understand how it is changing our world. Read ahead on tracking COVID-19’s economic impacts on our world.
What is COVID-19?
On December 31, 2019, pneumonia from an unknown cause was reported to the World Health Organization (WHO) in Wuhan, China. By the end of January 2020, the virus had started spreading in other countries and WHO declared COVID-19 as a Global Health Emergency. Over time, the virus spread rapidly and today, there are over 170 countries affected with over 600,000 confirmed cases around the globe. While these numbers have been doing regular rounds on the media, people have been stocking up on supplies in the fears of lockdowns similar to that of India! Globally, COVID-19 is being perceived as one of the biggest challenges since World War II, as it is highly infectious with a relatively higher mortality rate. Furthermore, the terror of COVID-19 is causing widespread panic than any other pandemic. This aggravated anxiety and the shutting down of businesses has taken a major toll on the global markets.
Which industries have been affected?
It is safe to say almost every industry around the world is facing different degrees of burn from the spread of COVID-19. With travel restrictions in most countries around the world and the phobia of the virus, sectors of travel, tourism, and hospitality are facing the maximum first-order impact.
Along with travel bans, China also shut down many of its districts causing multiple manufacturing facilities to shut down or downsize production. This led to severe supply chain issues as companies face a shortage of supply. Companies are scrambling to cope with the deficiencies in their systems such as being dependent on a single supplier or having invisible lower-tier suppliers – those with whom they don’t directly deal – based in affected regions. This pandemic has led to an economic slowdown throughout the globe with falling GDP growth rates.
Our COVID-19 Thread
In the coming days, we will further discuss various facets of Coronavirus and analyze its effects on the global markets and your investments. We will dive deeper into the impacts on different sectors, the elderly’s financial health, consumer sentiments and labor market, emerging markets, and analyze the government’s efforts and stimulus packages. We will also see how this crisis is different from other recessions like the 2008.
As the number of confirmed cases rise, governments are trying their best to control the spread. Some steps taken by governments around the globe are closing schools and colleges, banning international travel, canceling events that involve a large gathering of people, starting virus testing centers, etc. Till a vaccine or a cure is made available, the best course of action is containing the spread through ‘social distancing’. As far as the impact on the economy is concerned, markets always find a way to bounce back and escape from the clutches of the gangster that holds it hostage. We are sure that businesses will rebound too, it might just take a little longer. If your investments have been affected, we suggest you evaluate your holding capacity and try to ride out the wave. For any further support, feel free to reach us at email@example.com or go over to our FAQ page here.
In these unprecedented time, both individuals and businesses need to stay updated with the latest news, scientific progress and announcements by the governments – there are several publications you can follow and here is a good daily COVID-19 newsletter that maybe helpful too.
In our next post, we will see how the COVID-19 compares to other past pandemics that the human race has endured. Stay tuned with us on Tracking COVID-19’s economic impacts.
This blog article has not been reviewed by the MAS. It is prepared solely for information purposes and does not constitute an offer or solicitation for the purchase or sale of units in the funds. This does not constitute any form of investment advice and Kristal Advisors (SG) Pte Ltd does not take into account your personal investment objectives, specific investment goals, specific needs, or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information provided here. The information and publications are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Kristal Advisors (SG) Pte Ltd.
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