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 outbreak of corona virus has affected almost the entire world. The individual nation economies as well as the world economy is hit badly. The American economy is considered as worlds largest economy by GDP. However, the outbreak of coronavirus has also shown its effects on this economic giant. USA has already banned travel to the virus affected nations which includes European nation. Now even Ireland and United Kingdom has come under this ban. Till 15th April, USA has put a ban on offering any type of visa to other nations. Although the country has on of the largest economy, these factors are affecting the country in a negative way. Because of the ban in visa and travel, the tourism industry is getting hit badly. The airline industry and the hotel industry are the other two industries which are badly affected. As the tourism industry has come to a standstill, the airlines are losing a huge revenue. All the hotels are empty due to the absence of tourists and the deserted streets. The sports industry has also taken a big hit. All the sporting events have been cancelled as there are restrictions on local gatherings. Due to these restrictions, the entertainment industry has also escalated as the theatres have been shut and all the releases have been postponed. The consumer spending plays a major part in strengthening of economy. However, due to this outbreak the consumer spendings have gone down drastically thus slowing the economy. All the major brands like burger king, Starbucks etc which were considered as a paradise for consumer spending have come at standstill. A national emergency has been declared in the country. The stock market was badly hit. It was the biggest hit the country had ever seen. $6trillion wealth was erased of by the stock market.
However, the effects on the economy are not as bad as they are on th other virus affected economies like china or Italy. However, if the situation becomes more serious then the economy will take a big hit because as mentioned above the consumer spending plays a major role in strengthening the American economy and if the restaurants, bars, gyms, theatres, malls etc are kept close for a longer time, the effects could be worse.
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.