Hey little fighter, soon things will be brighter. It’s a tough time for all of us. However, we need to stand together and face this. Be cautious now or else it’ll be hard to cure later.
How was the global economy affected due to the coronavirus disaster?
With the offensive virus affecting over 228,020 people across 176 countries & territories, the pandemic fear of insurmountable proportions has gripped the world resulting into an impending collapse of the global financial market. The human effects of Corona Virus disease are paramount. Apart from health risk, the current corona outbreak has the audacity to shake the world economy, deeply impacting the livelihoods of common people.
As the scientific name of Coronavirus (currently SARS-CoV-2) evolved in no time so did its impact on the globe as a pandemic or a health disaster. First of all, we need to understand the different sectors of economy.
Economy has three sectors
1. Primary Sector: The primary sector is generally known as the extraction sector. It is associated with taking raw materials. Occupations like forestry, mining, agriculture etc. are associated with the primary sector.
2. Secondary Or Manufacturing Sector: The manufacturing sector takes up the raw material and combines them to form a higher value added product. Activities associated with manufacturing sector:
• Small workshops producing pots, artisan production.
• Mills producing textiles,
• Factories producing steel, chemicals, plastic, car.
• Food production such as brewing plants, and food processing.
• Oil refinery.
3. Tertiary Activities: The service sector is involved with the intangible aspect of offering services to consumers and business. It involves retail of the manufactured goods.
We need to understand that how are the three sectors of economy getting affected due to coronavirus disease.
• Aviation
As part of the efforts to stop COVID-19, India on March 19 suspended all visas for almost a month. On 5 March 2020, the International Air Transport Association estimated that the
airline industry could lose between US$63 to 113 billion of revenues due to the reduced number of passengers. Due to the fear of getting infected by travelling and coming and contact with other people, people are staying at home and protecting themselves.
• Hospitality
With several companies restricting all but essential travel, business hotels in major cities could be left with a lot of empty rooms. As people are becoming more cautious, the business of restaurants have declined 30-35% in the past few days.
• Entertainment
There is also a fall in demand for entertainment. People are avoiding to go for any sort of entertainment, be it amusement parks, movies, open mic shows, exhibitions. Delhi, Kerala and Jammu & Kashmir have ordered that cinemas be shut till March 31. Maharashtra has also ordered the closure of cinemas in some cities, hurting multiplex chains like PVR Cinemas and Inox Leisure Limited.
• Apparel
35% of apparel export orders come from Europe. An apparel manufacturer in Tirupur, India’s largest textile hub says, “There is a fear
psychosis because of coronavirus. If this continues for 2-3 weeks, it could be really bad for us.” India exported over 1 lakh crore of garments during 2018-19, according to the ministry of commerce. What is accentuating the apparel industry’s problem is the decline in the footfalls at stores, both as a result of people’s reluctance to come out and the closure of malls.
• Poultry and Seafood
With the spread of the coronavirus, it was not surprising to see a spurt on the unsubstantiated social media messages regarding do’s and don’ts. Among these, there was a warning to stay away from meat. This warning has scared Indians to the extent that the demand for chicken has reportedly gone down by 30%.
We need to prevent the growth of coronavirus to stop getting impacted and losing out on essential things. We are all humans, we get sick, we worry about loved ones. As social creatures, we try to help one another when bad things happen.
