Economic Impact of Coronavirus (Covid-19)

Chasen C., Journalist/Photographer

Chasen Colwell

Mrs. Ong

Journalism

17 March 2020

As we know, Covid-19 or the coronavirus is taking the world by storm, sparking concern among all. Stated in my recent article revolving around the Coronavirus: Coronaviruses are a particular species of viruses that typically affect the respiratory tracts of birds and mammals, including humans. Specialists associate them with the prevalent cold, bronchitis, pneumonia, and rigorous acute respiratory syndrome (SARS), and they can additionally affect the gut. Cold- or flu-like symptoms conventionally set in from 2–4 days after a coronavirus infection and are typically mild. However, symptoms vary from person-to-person, and some forms of the virus can be fatal.

As the threat of coronavirus continues to spread, economic participants are becoming worried. Less retail business has resulted in the economic scare in which is taking place. Companies such as Nike or Apple obviously own physical retail stores across the country, a major part of their profit. Despite having an e-commerce system, the absence of foot traffic negatively affects the profits and jobs of many. Since the government’s suggestion of self-quarantining,  jobs have been lost and a stable income as well. Companies have been losing value as stocks continue to plummet. As of yesterday, March 16th, the stock market had it’s worst day in history, with the Dow Jones dropping roughly 3,000 points. This is about a 13% decrease in value. Stocks are being sold in order to save money, yet this is simply making the economic situation worse. As investors take their money out of companies, the companies become less in value, ultimately resulting with a drop of shares. The infrastructure across the globe has been partially ruptured, limiting communications, occupations, and threatening all. Regarding the physical health of civilians across several countries, the coronavirus continues to spread, however, China has began to level out their numbers. On the contrary, the U.S. is rapidly gaining in numbers along with Italy and much of Europe. The Dow Jones has dropped approximately 2,000 points on multiple occasions the past months, only becoming worse. the Washington Post states:

“In a survey late last month of 90 large multinational companies, the British Standards Institution found that almost half (46 percent) lacked contingency plans that were specifically designed to deal with a possible disease outbreak. Of those surveyed, 71 percent of supply-chain managers working in industries such as consumer products, pharmaceuticals and aerospace said the coronavirus had disrupted their global supply chains.” (Washington Post – https://www.washingtonpost.com/business/2020/03/16/stocks-markets-today-coronavirus/)

As stated, 71 percent of companies have had a disruption in their supply chain, showing a major decline in economic activity. CNN sums up the situation as followed:

  • Another day, another circuit breaker for the Dow Jones, as the stock market hit limit down almost immediately.
  • Despite a brief bounce, the coronavirus battle looks increasingly like a marathon and not a sprint.
  • Dow bulls saw their positions smashed as big banks halted buybacks, oil companies faced credit downgrades, and Boeing collapsed 23%.

Thank you for checking out my story of the Coronavirus’s economic impact.