Updated: Aug 29
The covid-19 virus was first detected in China, now it spreads worldwide in less than 100 days only. Today more than 180 countries are under the effect of lock-down or some short of restrictions just because of this virus only. Research says one-third of the total population is locked into their houses with some form of restrictions under the fear of the coronavirus.
Coronavirus affected more than world war I.
Almost every country around the world is trying every possible measure to slow down the spread of the coronavirus from lockdown to national quarantines. The world health organization has already officially announced covid-19, a world pandemic. More than 2 lakh people have died and over 29 lakh people have been infected by the coronavirus world widely. During this lockdown, citizens are only allowed to leave their homes only for the essential requirement or in case of any emergency only.
The effect of coronavirus is more than the effect of first and second world wars which are fought by a combined total of around 135 million. In 1940, the world population is around 2.3 billion which is less than the population living under the impact of lock-down today.
This virus is more deadly among the other viruses like SARS and MERS.
SARS infected around 8000 of the total people in 26 countries and killed nearly 9% of the total among them. Whereas MERS infected around 1000 people among 24 countries and killed around 30% of the total infected population.
The sad reality about the novel coronavirus is that it is continued to spread quickly and there is no vaccine or proper treatment available on market. Scientists around the globe are trying to develop vaccines but it is not likely that one will be available for mass distribution before 2021.
So, the question that comes to everyone’s mind is that what will happen to our business after this Coronavirus pandemic.
With the growing number of cases and rising fear among the public, it would not be wrong to say that the worst is yet to come. Coronavirus not only impacted the health of individuals but it everyone’s earnings, it not only took the life of individuals but it is going to take uncountable jobs, it will shut down many businesses.
No one knows how much time it will take to contain this virus globally but what we know, it crashes the global stock market which means fund flow will be extremely affected. When the stock market collapse it means investors tend to move their investments towards safe zones which in most cases is gold. Lack of investment will raise to decrease the possibility of business expansions which will decrease the employment rate.
A low fund flow rate means people will start to boycott non-essential items.
Impact of Coronavirus on Chinese economy
This virus was started in China, so it is important to understand what happened with china after lock-down due to the coronavirus. The first impact of the business slowdown was also faced by China only. Although China alone contributes about 16% of the total world economy and is also a world power after lockdown due to coronavirus-
· Chinese industrial output decreased by 13.5%.
· Chinese overall sales output decreased by 20.5%.
· Chinese overall employment rate decreased by 13.5%.
· The most affected business due to coronavirus is tour and travel based which faced around 95% drop rate.
· No traveling means transportation business will also decline, which results in 3 out of 4 companies reported temporary shutdown.
· Automobile and component-based industries also reporting around 80-85% drop in sales.
· Chinese fixed asset investments fall to 24.5%, down from 5.4% growth.
· Growth in service production decreased by 13%.
· Chinese gross domestic products decreased by 13.5%
Whereas officials in Beijing attempted to put a positive spin on numbers, saying the impact was temporary.
Impact of corona on Apple Inc.
Big companies are also facing sales drop due to fear and lock-down like Apple Inc. started to reveal its losses throughout the world due to lack of production and sales drop due to which Apple is shutting down its sales offices globally like in china apple had shut down its 42 sales store and 4 in India as well.
As per Apple their work is being resumed but experiencing a slower return rate to the normal condition than they expected.
Impact of coronavirus on Indian economy
In India business initially shifted from work from home to complete lockdown. It is expected that under complete lockdown within 3 months of India's Rs 182 lakh crores ($2.8 trillion) economy is functional. India expected to lose over Rs 32,000 crore ($4.5 billion) every day during the lockdown.
According to the survey, COVID-19 will impact Indian businesses to a great extent, every industry is expecting de-growth into their sale and other operations which results in their next step w