Effect of Coronavirus on Australian Economy

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Coronavirus has become a hot topic to discuss. This virus is like a leech that is stuck to the bodies of people and is killing them slowly. It’s been just two months in this new decade and already approximately more than a million people are dead because of this virus. This virus has been declared as pandemic by the world health organisation (WHO). The virus is having its bad impact on the people as well as on the economies. Many countries are shut down because of the outbreak of this virus. Major economic countries like India, China, USA have brought their foreign trades to a halt. The virus is having a mounting impact on the global economy.

The Australian economy has been hit hard by the coronavirus. The entire country is under lockdown and this has deprived the customers from restaurants and café due to which the restaurants and cafes are losing their business. Due to the travel ban, airline industry is facing huge losses. The stock markets have been down. The shares have lost on third of their value. Along with the airlines, the travel companies have also been hit hard.

Big companies in Australia like quantas and virgin are hot badly. They are not being able to pay their employees. There are around 20,000-30,000 employees who are on an unpaid leave. The Australian listed retailers who had their overseas operations in Europe and north America have shut their outlets in the region. Out of all the companies, profits were withdrawn by 28 listed companies on the stock market. The credits markets have also frozen as raising fresh money is almost impossible. Due to this the investors are nervous and worried about their money. They are refraining from making any investments.

The small and medium sized companies have lost huge money. This has led to housing crises and the unemployed workers are not getting their wages on time. According to the economists, Australia is going to face recession and they are not aware of how long it will last. It is expected that the virus will be at its peak in the month of June. The economy is expected to recover after this. The economists have predicted that the economy growth would be 0.5% this year. However, if the worse scenario, if the infection goes on till September, then the economy would be going backward for the entire year. This won’t bring the airline traffic back to normal for the next two years. This will lead to an increase in unemployment with wages either remaining static or going backwards. The businesses are shut and are losing huge money. They have lost their money and don’t have any fresh money to pay their employees.

Australian economy has been hit really badly because of coronavirus. The jobs, which were already less in number have become lesser. Unemployment is spiking up rapidly and if this virus is not curbed quickly an id required measures are not taken quickly then the economy would be worst hit in the history of the continent.

This is considered as the biggest financial crisis since 2008. If somehow major economies that are affected by the virus can curb this virus and get back on track in the second quarter, then the global economy could be stabilized up to certain extent. Once the industries start, the supply chains would be back on track which would revive the international trade. However, remedy to curb this disastrous virus should be found out. Scientists and researchers all over the world are putting all their efforts in search of a solution against this virus. 2020 has surely brought some bad gifts for the world.