Admit it or not Coronavirus has already disrupted the global economy more than it affected the health! Leading to the mega recession! Already Europe and Japan were at the verge and India was falling short from its average GDP.
Corona virus is officially a pandemic — and job experts say that it will lead to the mega recession!
There are two scenarios a Good one and the Bad one!
Good Scenario,
We know till date we do not have any cure or vaccine for Corona like we did not have one for Spanish flu in 1918-19, so considering that it will naturally die in a quarter year, Hopefully!
Even in this case, many small businesses will go bankrupt but economies could be revived by 2020, Global economy will suffer a disruption but it won’t be catastrophic.
Bad Scenario,
In the worst-case scenario, The coronavirus will spread devastation over the year and billions may get affected!
In this case, it will lead to a global catastrophe! As even a 5% decline in
consumption by a consumer will trigger a world recession!
Conventional recession can be encountered by loose monetary policies like reducing interest rates to boost business but when the slowdown is because of fear and mindset of a consumer (We have experienced the same mindset about the Auto sector in 2019), there is nothing much we can do about it in a short period of time!
Sectors which will affect the most
Travel and Tourism:
The global coronavirus outbreak means millions of travel and tourism jobs are at risk, says a leading industry body.
The World Travel and Tourism Council (WTTC) says up to 50 million jobs could be lost because of the pandemic.
Automobile:
India largely sources engineering goods, electronics and special brake, steering and engine components from china.
This will undoubtedly have far-reaching consequences for India’s automobile sector. Already battling one of the worst slowdowns in over two decades, the virus attack would mean further doom for India’s auto sector.
And there are so many other factors as shutdowns will break the industries- airline, road and transport, film, music and live shows and many more!
People will cut down their expenses so the effect can be felt at every corner of the market from small shop owners to big giants.