Global Economic Impact of Corona Virus

Spread the love

At The Economic Scale, Corona Virus will Indirectly/virtually impact approx.3000 Million ( 300 Crore) people globally

This is the first time in human history that almost the entire world is in a LOCK-DOWN. Never could have anyone imagined such a situation when :

  • A person will not be allowed to move out of their house?
  • A person will not be allowed to attend the funeral of his loved ones?
  • A person not being allowed to stay in the hospital when his own parents/siblings/kids/spouse being critical. Forget about staying can’t even see them.

But as old people say “ Neither you know Nor you have control over what is going to happen tomorrow”. Similar things are happening, which neither any human nor any country imagined or thought. YES, ALMOST THE ENTIRE WORLD IS IN A LOCK-DOWN AND PEOPLE ARE FORCED TO BE AT HOME TO KEEP THEMSELVES SAFE FROM COVID.

 QUESTION:  For how long will this LOCK-DOWN continue and secondly what impact it will have on human life is??

Nobody knows, how long it will go on. Probably till the time either we have a vaccination/medication to cure it. Alternatively, we have a sure shot way to control it by following a specified diet or a lifestyle habit or any other way, this is going to last forever.

Yes, it will definitely have an impact which is greater than any other calamity in the past or combination of such put together. In the past, any such catastrophe would have impacted a region or a state or a country but it would not have made a Global impact. To quote an example, the recession of 2008 had more impact on the USA/UK but not much on India /China, similarly the Nuclear Attack on Japan had an impact on Japan, War between India & Pakistan had an impact on the two countries and partially few others. But this time it impacts the entire human race globally.

All industries apart from the Health industry will be badly impacted by this Coronavirus. The industries that will be affected the most :

  1. Travel and Hospitality (Including Railways)
  2. Food &Premium Restaurants & Cafes
  3. The entertainment industry (Malls/ Gaming Industry / Amusement Parks / Film Industry)
  4. Imports and Exports of almost all products except food items
  5. Automobile Industry and Automobile ancillaries
  6. Oil companies
  7. Govt Construction Companies
  8. And Many More

From my point of view,  few lakh people will die due to Corona, but in the longer-term, it will affect 40% to 70% ( Approx 300 Cr to 400 Cr) of a global population indirectly. Now this impact will be in terms of economic slowdown/ recession/adverse effect on few sectors which will result in cost-cutting/ salary cuts and layoffs.

From the last few years, technology has been replacing people in most sectors and now with this global recession, there will be more manpower cut across the industries. Industries which we will grow will be:

  1. Pharma industry across the Globe
  2. Health Care Industry
  3. Preventive Care Industry
  4. More construction of Hospital /Nursing homes
  5. Food and Food safety industry
  6. Products of Organic industry
  7. Agri Industry
  8. Innovative solutions by IT for cost-cutting
  9. Digital platform companies
  10. Online delivery companies

So we all together need to be prepared for more challenging times ahead across the whole globe :

  • Cost-cutting across all industries
  • Technology Replacing People
  • More focus on savings
  • A substantial cut on luxury spending cut (Frequent Vacations / Buying Luxury cars / Spending on Gadgets etc.)

So as an individual/company together we need to :

  • Upgrading skills and increasing productivity
  • More focus on training at the individual and organization level
  • More focus on technology to reduce cost
  • More focus on the service industry and customer satisfaction

This will be the first time recession that will impact the whole world. The above challenges will be applicable globally. Prepare yourself to embrace the new world full of challenges and opportunities. But opportunities…. are only for those who are willing to change/upgrade themself with time and as per need of the hour.

Pawan Jasuja

1 thought on “Global Economic Impact of Corona Virus”

Leave a Comment