Coronavirus: What It Means For the Mankind and the Economy

Deteriorating economies, crashing stock markets and business shutdowns have led the world to face a blow this severe almost after a century.

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With the Coronavirus rapidly crawling up the skin of humanity worldwide, the world is in complete chaos. Deteriorating economies, crashing stock markets and business shutdowns have led the world to face a blow this severe almost after a century. Taking precautions and not panicking must be followed by everyone. The picture of the world created in the past two months after the outbreak of the virus in Wuhan, China, is absolutely haunting.

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As the virus is highly infectious, isolation is the best possible way known to mankind to prevent this disease. Schools and colleges are shut, offices are promoting work from home, multiplexes and shopping malls are strictly ordered to be closed, airports and railways stations are avoided and streets are absolutely empty. People have completely isolated themselves while the economy faces a severe blow that will need years to compensate for the loss it is facing.

Impact of the Pandemic

  • With more than 209 countries and territories being affected by the virus, about 88,600 people have already died and more than 15,00,00 people have been tested positive across the world.
  • Educational Institutions, offices, factories and industries have been shut down completely to prevent mass gatherings.
  • People are advised to stay as much as possible at their homes to avoid being infected by the COVID-19 virus.
  • Travelling to the affected countries has been strictly prohibited. Airports sharing both domestic and international flights are fumigated and under strict observation. Airports and railway stations are completely vacant.
  • Delegates and heads of the countries are constantly in touch with each other and sharing data, pieces of information and research materials on the virus.
  • SAARC and the UN have taken numerous steps to help each other in this scary situation.
  • Funds have been made to aid the affected countries.
  • The World Health Organisation is constantly uploading precautionary measures that are useful in this scenario for the masses to follow.
  • Healthcare facilities are built all over the world to meet the crisis. Doctors and nurses are trained to treat patients.
  • The government is taking the necessary steps to educate people more about the spread of the virus and how they can protect themselves by using telecommunication methods and posters.

Impact on the Economy

The global economy is facing a devastating blow by the lockdown and isolation of masses rather than the virus itself. With people stocking up their needs for future use and complete shutdown of industries and offices, the economy is drastically going down. Various multinational companies, manufacturing industries are vacant which has resulted in stagnant growth of the financial resources.

Manufacturing industries: As China was the epicenter of the outbreak, most of the Chinese industries and manufacturing units have been completely shut down. China faces the sharpest blow that it has ever seen in centuries. With the termination of production in China, numerous industries from all over the world, including India, like pharmaceutical, technological and automobile, among others, are facing disruption as they depended on China for their raw materials.

Tourism: As more than 166 countries are affected by the virus today, tourism is severely affected. People are banned to travel to these high-risk prone places. Airports and railway stations are completely vacant as people are scared to travel. Business tours are cancelled and leisure travels are completely zero, which together contributed about $887 million to the Asian GDP in 2017. Experts claim that the effect will last until next year.

Stock market: Within a few weeks of the outbreak, coronavirus has destroyed about one-third of the global stock market. Indian stock market faces a strong plunge from the peak it received two months ago. According to a report by the BBC, the US is seeing the worst fall since 1987.

Hyperlocal deliveries and e-commerce: The biggest impact that the COVID-19 has created is the isolation of people. People are scared to get out of their homes even for the purchase of basic necessities. As a result, they are more dependent on e-commerce platforms and vendors offering hyper local deliveries at their doorsteps. This has lead to the flourishing of business. Goods such as sanitizers, hand washes, tissues and masks are at their peak of sale while fashion items, cosmetics and packaged food sales have decreased drastically. 

As the economy of the world is witnessing a plunge, the major e-commerce companies are facing a crisis. People are not mentally prepared to invest in anything other than basic amenities and medical necessities.

Due to the growing pandemic, the demand for medical equipment such as surgical sanitizers, masks and disinfectants, among others, have increased to such an extent that it is becoming a challenge to keep pace with the demand. Goods such as groceries, vegetables, fruits and sanitary items are being sold rapidly by the e-commerce sites and are in huge demand. The nationwide lockdown has created a cacophony in the society and people are groping on panic-shopping and hoarding of essential goods such as groceries, sanitary products and even drinking water, which has already resulted in shops exhibiting empty shelves. The situation has also put a tremendous pressure and traffic on e-commerce, especially hyperlocal delivery applications and websites, which has resulted in the crashing of certain websites.

The best thing we can do to overcome the present situation is not to panic. With access to social media, news and rumors are spread with equal speed. It is best that you do not believe everything you hear and see. Take all the necessary precautions advised by WHO to safeguard yourselves and your family. Utilize this time to inculcate your hobbies and spend quality time with your family.