The Corona Virus (COVID-19) outbreak, which originated in China, has infected a huge number of individuals. Its spread has left businesses and organizations around the globe in a great loss.
Below mentioned are some economic impact of COVID-19 on business and industries
#1 COVID-19 disrupting Digital Ecosystem
With ad spend expected to fall in many sectors. Investigators expect Google and Facebook will encounter advertisement income decreases in travel and other industries most affected by global efforts to slow the spread of coronavirus.
Google will see a 15% year-over-year decline in travel ad revenue in the first quarter and a 20% drop in the second quarter due to the coronavirus outbreak.
Media buyers have seen a different range of scenarios, with some not seeing any changes, to others making dramatic adjustments to near-term budgets. Some are even raising digital budgets.
Digital marketing strategy has always required a mix of art, science, difficulties, and pressure – to get that mix right is not possible due to coronavirus outbreak. For digital marketers, this may mean spending more from an incremental point to get that business.
#2 Fall in Economic Growth
If the economy is growing and developing, that generally means more wealth and more new job openings. It’s measured by looking at the percentage change in the gross domestic product (GDP), or the value of goods and services produced, typically over three months or a year.
It is said that COVID-19 is a “longer lasting and more intensive” outbreak that could halve growth to 1.5% in 2020 as factories suspend their activity and workers stay at home to prevent themselves from the virus.
India annually earns nearly $30 billion from foreign tourist arrivals, and now due to the spread of the COVID-19, it has already weakened the economic growth.
The world’s economy had grown at its slowest rate since 2009 and now in 2020 due to the coronavirus outbreak, according to the Organization for Economic Cooperation and Development (OECD).
#3 COVID-19 is slamming Stock markets
The stock market has been in a free fall the last week. Investors have been worried about the impact of the COVID-19 as it spreads outside of China in more than 120 other countries.
Big shifts in stock markets, where shares in companies are bought and sold, can affect investments in some types of pension or individual savings accounts. The last week of February saw the worst performance for major stock markets since the 2008 financial crisis.
The domestic share markets in India have had one of the worst weeks in history as there has been no improvement in global markets, which have been registered massive falls over consecutive trading sessions.
Analysts expect the volatility to continue in both domestic and international stock markets as uncertainty remains over the economic impact of the virus
#4 COVID-19 slowing down Factories
China makes up a third of manufacturing globally and is the world’s largest exporter of goods. But activity has decreased due to the outbreak of the Corona Virus as factories pause their operations to try to prevent the spread of Covid-19.
Also, the tech sector is currently feeling the impact of the coronavirus, with companies closing offices, stores, factories and restricting employees from nonessential travels to China as well as other counties. Companies like Apple, Samsung, Microsoft, Tesla, and Google.
Nasa said pollution-monitoring satellites had detected a significant drop in nitrogen dioxide over the country. Evidence suggests that’s “at least partly” due to the economic slowdown caused by the outbreak.
#5 Customers buying less
Fear of the COVID-19 outbreak means that some people are choosing to avoid activities that might expose them to the risk of infection, such as going out shopping. Restaurants, car dealerships, and shops have all reported a fall in customer demand. Chinese car sales dropped by 92% during the first half of February. More carmakers, like Tesla or Geely, are now selling cars online as customers stay away from showrooms.
Shipments of smartphones are also expected to take a big hit in the first half of 2020. Apple was one tech giant who said sales had been affected by low customer demand.