Coronavirus, as the global pandemic, has infected many of people all over the world. The outbreak disrupts the economy and basic social functions like schools, health care, and employment. It doesn’t affect to the human living, but also to the world economy.
For instance, in 2020, coronavirus outbreak could shrink China’s economy by 1%-2%. This pandemic and and public health emergencies have a consistent track record of negatively affecting local economies.
In addition, global trade impacts the supply of goods from affected areas. Investors expect greater returns on new investments the longer an outbreak lasts to compensate for higher risks.
Here are how coronavirus impacts to Economy and Humankind according to thebalance.com.
1. Coronavirus Economic Impact in China
The economic impact was immediate, according to thebalance.com. Take an example, Hong Kong’s Hang Seng Index immediately plummeted 9% since its Jan. 16 peak. On March 9, 2020, the price of Brent oil fell to $20.09 a barrel, a 71% drop from its Jan. 6 peak of $70.25.
As the disease spreads worldwide, it constrains supply and lowered demand. Travel and entertainment industries were the hardest-hit at first as people stayed home. Airlines could lose up to $113 billion, while the film industry could lose $5 billion.
As a matter of fact, the virus could cost the global economy as much as $2 trillion for 2020. It could reduce global growth rates to 0.5%.
The outbreak has already had a devastating effect on China’s economy, the first country hit. Auto sales dropped by 80%. China’s exports fell 17.2% in January and February. Rabobank estimated a 1%-2% impact on China’s gross domestic product in the short term.
The outbreak occurred in the Hubei province, which accounts for 4% of China’s GDP. Wuhan, the capital, is a transportation hub and China’s second-largest auto manufacturer. It also coincided with the Chinese New Year, a strong period for retail sales.
2. How Pandemic Affects Humankind
Epidemic outbreaks occur somewhere every year. In fact, they result from mutations of existing strains and typically pass in a few months. Global pandemics occur every 10 years to 50 years, resulting from new virus subtypes to which humans haven’t developed an immunity. Many of them transfer from animals.
The best way to protect yourself against a global pandemic is to follow common sense. The new vaccine could take years, so you can do several things as a prevention.
First, get a flu vaccine each year. Second, avoid people who are coughing or sneezing. Thirdly, wash your hands often with soap and water. Last but not least, please kindly don’t touch your eyes, nose, and mouth. This helps keep germs out of your body.