Impact of Coronavirus on Italian 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 Italian economy is considered as the 3rd largest economy in Europe. Having one of the major economies, it is the founding member of European union. Italy is one of the leading countries in the world trade. However, today Italy’s economy is suffering from various problems. To make it worse, the outbreak coronavirus has locked down the entire nation. After china, Italy has been the worst affected country because of coronavirus. The government had to lockdown the entire country in the fight against coronavirus. Italy saw a historic 17% decline in the stock market. It was the highest escalation in a single day the country had ever seen. Since the outbreak, the stock index has lost 40% of its value. Worst affected businesses are the small and mid-size businesses due to limitations in financial flexibility. These businesses contribute 95% to the Italian economy. As the country is in a lockdown, the retail business has also seen a huge escalation. The government has designated 25 billion euros to support the falling economy. All the local shops have seen a 70% downfall in their sales. In order to reduce social interactions, government has put restrictions on people hanging out on the streets. All the stores including the larger brands are closed down till 25th March. However, stores for the basic necessity like supermarkets and medical stores have been kept open. Milan, Italy’s financial capital has been brought down to standstill. The conditions in the nation are deteriorating as all the sectors of economy are hit because of this outbreak. Along with the retail, the hotel business has also been hit badly. As the country is under lockdown, almost all the hotel are empty. As the production has reduced drastically, the prices of goods have spiked up. There are many firms which haven’t yet recovered from the financial crises in 2008 and to make their situation worse, the have been drawn into another financial crises because of the outbreak of this virus. It is predicted that the banking sector could be worse hit if the situation deteriorates.

In such time Italians need to be patient and follow the instructions given by the doctors in order to avoid this virus from spreading. 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.