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Is Corona A Threat to Economy?

Updated on April 8, 2020
Suchismita pradhan profile image

An author of the book" Aggregate 50", a frequent traveler, nature lover and a financial executive.

Mask For Precaution

Before the summer whack in India and most of us strive to get a sunblock or search for a mask for protection of our face from the harsh sun rays, coronavirus had already entered our doors forcefully and made us mandatory for wearing a mask.

This deadly disease had already given stringent headaches to many powerful countries and the hardest hit so far is China and Italy. Everyone is trying their best to win the battle against corona and started taking precautionary measures.

But before we further discuss more let me first give a brief about this virus and its symptoms.

According to the World Health Organization, Coronavirus is a family of viruses that can range from the common cold to middle east respiratory syndrome coronavirus, severe acute respiratory coronavirus.

Source

Why is it dangerous?

The next question is why we are getting panic attacks while taking its name?

So here I am jotting down a few points that will help you to understand why the corona is dangerous than normal flu.

  • It can spread its wings easily.
  • The virus circulates through droplets in the air spread by coughing or sneezing and enters the body through the mouth, eyes or nose.
  • It can remain viable on surfaces for hours to days and may be able to enter the lungs directly when inhaled.
  • There are no specific treatments for coronavirus only symptoms can be treated.
  • We are not immune to this disease.

Now another important question originates if the virus is that deadly then what steps should be taken to stop this monster enter our homes?

Well, the government had taken many precautionary measures to curb the pandemic establish it's roots further. From spreading awareness about the disease to isolating and treating people who got infected through this disease, the government is taking every possible action to combat against the devil.

The government is requesting people to stay at home unless there is no emergency. Many companies have instructed their employees to work from home.

As a result of these many consequences have been raised which may affect our economy in the near future.

Impact Of This Deadly Virus On Various Sectors

Each day in various countries this virus is eating up people or making them ill.

What started in the country of giant pandas called China soon spread its wings of infections across the US, France, Spain, Italy, South Korea and now in India.

More than 1,62,000 have been infected by Covid-19 as of now according to the reports. Over 4,300 people have had deaths attributed to the coronavirus, the overwhelming majority of which have been in mainland China. The World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC) have each cautioned countries worldwide to prepare for a potential pandemic after outbreaks in countries like Iran and Italy, and the continuing news is having major effects on world economies and markets.

India, so far, has officially reported 110 cases and two deaths, according to the Ministry of Health. More cases are emerging every day even as states continue to issue advisories on social distancing.

The government has put in place stringent measures to curb the spread of the virus. A mandatory quarantine of 14 days has been initiated for all international travelers arriving in the country.

Now as the Government is taking all possible steps to chop down the wings of this dangerous disease for further expansion. These results in declining many industries.

  • Stock markets have declined.
  • There is a huge loss to the tourism sector as most of the countries have already restricted visitors from visiting the countries as a result of this cruise ships and airlines were currently being more impacted.
  • Hotels are going to bear a heavy deprivation as there is a shortage of travelers. People are avoiding being social.
  • Food industries like bars and restaurants are going to be shut down for a few days which will lead to a massive loss to this industry.
  • Transportation industries are suffering.
  • For many companies around the world, the most important consideration from the first ten weeks of the COVID-19 outbreak has been the effect on supply chains that begin in or go through China. As a result of the factory shutdowns in China, many disruptions have been felt across the supply chain.
  • The aviation sector is undergoing huge losses. Travel plans are already changing and airline bookings are being affected.
  • Entertainment Industries is also under the umbrella of suffering as malls and movie halls are going to be shut for a few days.
  • In consumer goods, for example, customers may put off discretionary spending because of worry about the pandemic but will eventually purchase such items later, once the fear subsides and confidence returns. These demand shocks—extended for some time in regions that are unable to contain the virus—can mean significantly lower annual growth.

The initial economic adjustment occurs through falls in equity markets, especially for the most affected industries.


Source

Will Coronavirus Pandemic Trigger Recession?

This scenario is similar to the global slowdown.

If the number of cases continues to grow, throughout quarter two and quarter three, possibly it will lead to a reduction in the confidence of the consumers by the end of quarter four.

These scenarios may reduce the GDP growth hence leads to a recession.

Source

What Should Be Done At This Scenario?

Companies should take proper majors to deal with the storm.

Develop a better relationship with your customers. While consumer demand is down, it has not disappeared—people have dramatically shifted toward online shopping for all types of goods, including food and product delivery. Companies should invest in online as part of their push for multiple channel distribution.

Plan and implement specific financial strategies. Regular analysis of financial statements like balance sheet, profit and loss account, cash statement will help to know the factors that may trigger a liquidity crunch in the company.

Boost the morality of your employees as they are the main assets of the company.

In order to face the storm, companies should define moves to stabilize the organization in each scenario.


© 2020 Suchismita Pradhan

Comments

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    • AndazeAkash profile image

      AndazeAkash 

      2 months ago

      A good one ma'am. Keep going.

    • nitinkhaire profile image

      Nitin Khaire 

      2 months ago from Mumbai

      The pandemic is unprecedented and shaking the world violently. It is affecting every aspect of life and is scary. People are dying left and right everywhere. Yes, the world economy is in shambles and will take a very long time to recover. The priority right now is to save lives and then work on the economy. Your suggestions are good and will help the economy to limp back to business as usual. It's going to be a long and painful road though.

    • Suchismita pradhan profile imageAUTHOR

      Suchismita Pradhan 

      3 months ago from India

      Thanks Prateek.You guys are the main warriors now a days.We thank you for this from our bottom of our heart.

    • PrateekJain24 profile image

      Prateek Jain 

      3 months ago from Madhya Pradesh, India

      Very simple and attractive explaination suchi mam. You are truly an inspiration for new writers like me. Your language throughout the article was so confident and focused. Description for each topic is done very well. Thank you for sharing this valuable information and your opinion in the serious cause. I am also working but have to go office due to the nature of work. Bankers need to be in the branch to carry out deposit and withdrawal process. However it seems like economy is very much harmed due to this and it will take a long time to recover from this hazard. Let's hope all well in future and see how more surprises are waiting for us. It is also important to notice that government is focused on citizens safety first not on economic growth and stability. This is a very generous step by them. Let's fight with this diseases by following the rules laid down. Be safe and stay at home.

    • Suchismita pradhan profile imageAUTHOR

      Suchismita Pradhan 

      3 months ago from India

      Thanks Mr Murali for your comment.Market is blood shed now so we will incur some losses but still have patience and be optimistic about the future .

    • hmkrishna profile image

      Halemane Muralikrishna 

      3 months ago from South India

      Dear Ms Suchismita, it is a contemporary apprehension. A person like me staying away from the equity market has suffered due to losses in mutual funds also. We have to spend more on health and hygiene now. Lockdown has hit all businesses. Whatever arrangements made fall short as long as people do not understand the real transmission modes clearly in an understandable manner. I did some effort to create awareness on the use of natural remedies in such situations. Please find some time for reading my article for overcoming viral malady: http://hub.me/anpsx

    • Suchismita pradhan profile imageAUTHOR

      Suchismita Pradhan 

      3 months ago from India

      Thanks liz for stoping by.You are right everyone is prioritizing safety rather than economy and that should be our first priority.We all are together in this war.As the real antidote to endemic is cooperation.life is more important than financials.

    • Suchismita pradhan profile imageAUTHOR

      Suchismita Pradhan 

      3 months ago from India

      Thank you Mr.Singh,Iam glad you liked my article.lets be optimistic and hope we will win the war against the virus soon.

    • Suchismita pradhan profile imageAUTHOR

      Suchismita Pradhan 

      3 months ago from India

      Thanks Cijini

    • Eurofile profile image

      Liz Westwood 

      3 months ago from UK

      At the moment the UK government's priority is saving lives at all costs. The economy and politics are of reduced importance.

    • profile image

      Devika Primic 

      3 months ago

      Informative and important to everyone. I learned lots from this hub.

    • emge profile image

      MG Singh 

      3 months ago from Singapore

      Nice and informative article. I am afraid the Chinese have gifted this virus and it's not going to go away easily.

    • RoadMonkey profile image

      RoadMonkey 

      3 months ago

      There may well be some very long-lasting effects from this pandemic. One of the old pandemics, "The Black Death" caused long lasting social effects over the whole of Europe. And even though it happened hundreds of years ago, The Black Death has not disappeared. It is called Bubonic plague and is still endemic in some parts of the USA.

    • Prantika Samanta profile image

      Prantika Samanta 

      3 months ago from Kolkata, India

      Combating the novel coronavirus is the major challenge that the mankind is facing today. COVID-19 is our current nightmare as it has affected numerous and killed many across the globe.

      With countries locking down and restricted movement due to COVID-19, the tourism industry has faced a major blow. The effect might be far reaching.

      Hopefully, antidote for the virus will be soon out in the market and we can all resume our normal life.

      Until then, let's all take the preventive measures against the novel coronavirus and keep ourselves as well as others safe.

      Thank you, Suchi, for an excellent and insightful article.

    • Suchismita pradhan profile imageAUTHOR

      Suchismita Pradhan 

      3 months ago from India

      Thanks swati.

    • Dt Cijini Manoj profile image

      Cijini Manoj 

      3 months ago from Kerala

      Good suchi

    • Natasha Tungare profile image

      Natasha Tungare 

      3 months ago from India

      The way you have described the current status of economy is really amazing. But the best part is, our entire country and all the companies are prioritizing safety before economy. This itself signifies the symbol of unity!

    • profile image

      Swati Khandelwal 

      3 months ago

      Very nice and informative

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