Business Impacts of the Coronavirus Pandemic
World Health Organization declared COVID-19 or the coronavirus 2019 as a pandemic on March 11, 2020. But we can see the effects of this virus much earlier on global business and it is getting worse day by day. Up to May 2020, the coronavirus spreads in almost everywhere in the world. Though it is started in China yet Asia is less affected while American and European countries are facing all the troubles.
The death rate of coronavirus is much less than other deadly viruses like SARS coronavirus, or Ebola virus. But its high infectious rate pushes us to stay in our homes. Most of the countries are following strict lockdowns and finding their ways to save their economy. Experts suspect the business impacts and economic crisis caused by COVID-19 will cross the great economic depression of 1929.
Businesses that are Negatively Affected by COVID-19
- Hotels and Restaurant Business
- Tours and Traveling Business
- The Entertainment Industry
- Transportation Business
- Oil Industry
- Stock Market
This section is facing the worst impacts of this virus because governments have closed all the hotels, restaurants, and parks. This industry is completely dependent on social gatherings. But they are now locked for a long time and there is no sign of reopening.
They are running in loss and the millions of people who are linked with this hotel and restaurant businesses are losing their jobs. A trade group in Washington, D. C. reported that this industry shed more than 3 million jobs in the first 3 weeks of the lockdown. Up to 60% of employees in this field are at high risk of losing their jobs.
2.Tours and Traveling Business
We failed to stop this virus into one nation or continent. And the whole world is now witnessing its impact in just a few months. Our modern-day transport services are also facing a huge loss. People cannot travel due to government orders. Governments are closing even the inter-state transports to limit the spread of the virus.
And the future of international traveling is also uncertain. Places such as Venice, Paris, Vatican, where tourism is one of the major pillars of their economy are now in complete lockdown. Saudi Arabia banned hajj for this year due to the fear of coronavirus.
Thus, all the tourist spots and the small or large businesses that grow around it are going to suffer a long-lasting impact unless we see an end to this epidemic situation.
3.The Entertainment Industry
The government banned all sorts of shootings for films, serials, and ads. It is affecting a lot of lives that are directly or indirectly connected with the entertainment industry. The spot boys, electricians, set designers, dancers of Mumbai are in utter misery.
Many of them came from different states for money. Due to lockdown, they are now staying forcefully in the worst affected city of the country.
The internal, as well as the international ban on transportation, leads to a huge crisis in essential goods. Airlines and railways are dealing with most of the losses as they cause mass gatherings. Coronavirus is also challenging the import and export business between the nations.
There is a possibility that the post corona world will again look back on their strengths and resources. Every nation will try to become self-sufficient and independent. And they will avoid global investments which may cause bad impacts on the transport business.
In April, the price of crude oil went negative. Because there were no demands and the manufacturers were struggling to store so much oil. This shows the huge impact that the coronavirus creates in the crude oil industry.
The USA is the most affected nation of coronavirus until now. The USA is also a major crude oil manufacturing country with more than 12 million barrels per day. Thus COVID-19 is hitting hard on our immunity as well as on our pockets.
The stock market is already very unstable. But now it is getting out of control. The world is dealing with an unknown enemy. Thus the uncertain situations are creating panic and lack of confidence among the investors.
People are now trying to save their money for an uncertain future instead of investing it in the stock market. At first, there are impacts on the debt and equity markets due to the coronavirus. But now, the currency and commodity markets are also at risk. It is because of the crude oil war between Russia and Saudi Arabia.
Profit-Making Business Right Now
- Telecom Services
- Online Entertainment Sites
- Medical Industry
Not all businesses are in loss. The methods like “work from home” and “social distancing” are causing huge profits for the telecom industry. There is a massive rise in data sharing and consuming for the past few months. We can see a rising demand for home broadband or Wi-Fi connection and VPN worldwide. Online working is necessary now for businesses to run and this is increasing the profit of the telecom industry.
2.Online Entertainment Sites
We stop all sorts of public entertainments like clubs, parks, or movie theatres. And we also close ourselves inside our houses. All the big-budget movie production houses postpone their movies. This is causing a huge profit for binge-watching sites like Netflix and Amazon Prime. Amidst the stock market tumult, Netflix's share prices rise to 0.8%. The television industry is also making a profit by re-telecasting its famous shows.
The only industry that is in demand everywhere now is the medical industry. The emergency demands and panic buying of medicines, masks, sanitizers, PPE, and gloves lead to a huge shortage of them. Most of the sectors are reducing the number of employees they have. But the pharmaceutical industry is in need of employees to satisfy the huge demands during this situation.
The Bottom Line
In this critical time, we all need to show love and care to others. Countries are trying to revive their economy by slowly removing their restrictions on less affected zones. We all have to think and work hard from our ends. But we also have to keep ourselves safe. We all know health is wealth.