Survey respondents tended to overestimate the mortality and contagiousness of COVID-19, but underestimated the non-linear nature of how infectious diseases spread. This suggests that information and public education may play a central role in containment and in managing the negative economic impact of increased economic anxiety.
Some analysts estimated as early as January that the economic fallout of the epidemic on global growth could surpass that of the SARS outbreak. Dr. Panos Kouvelis, director of “The Boeing Center” at Washington University in St. Louis, estimates a $300+ billion impact on world’s supply chain that could last up to two years. The Organization of the Petroleum Exporting Countries reportedly “scrambled” after a steep decline in oil prices due to lower demand from China. Global stock markets fell on 24 February 2020 due to a significant rise in the number of COVID-19 cases outside mainland China. By 28 February 2020, stock markets worldwide saw their largest single-week declines since the 2008 financial crisis.
According to Carbon Brief, the coronavirus pandemic has resulted in China’s greenhouse gas emissions being reduced by 25%. In March 2020, satellite images from space provided by NASA revealed that pollution has dropped significantly, which has been attributed in part to the slowdown of economic activity as a result of the outbreak. These are incredibly uncertain times for the financial markets, with countries around the world suffering the destabilizing effects of the pandemic.
COVID-19: Briefing note, March 30, 2020
This article is intended to provide business leaders with a perspective on the evolving situation and implications for their companies. The outbreak is moving quickly, and some of the perspectives in this article may fall rapidly out of date. There is a risk that economic anxiety over the coronavirus crisis will fuel a long-term economic downturn. This column uses Google search activity and individual survey data to document a rapid increase in economic anxiety in the US in response to the initial global spreading of the virus.
- Dr. Panos Kouvelis, director of “The Boeing Center” at Washington University in St. Louis, estimates a $300+ billion impact on world’s supply chain that could last up to two years.
- Some analysts estimated as early as January that the economic fallout of the epidemic on global growth could surpass that of the SARS outbreak.
No company is immune to the challenges, and the repercussions of the health crisis are expected to be felt for many more months. Discover Statista’s global, regional, and national reports coronavirus on the economic impact of the coronavirus. As the global pandemic deepens and the human cost of Covid-19 rises, the novel coronavirus outbreak is sending shocks through the world economy.
Global stock markets crashed in March 2020, with falls of several percent in the world’s major indices. As the pandemic spreads, global conferences and events across technology, fashion, and sports are being cancelled or postponed. While the monetary impact on the travel and trade industry is yet to be estimated, it is likely to be in the billions and increasing. By 16 March, news reports emerged indicating that the effect on the United States economy would be worse than previously thought.
But across industries, companies can take action now to protect their employees and customers and minimize the economic damage. The global health emergency caused by the coronavirus (COVID-19) pandemic together with the state of alarm declared in Spain will have enormous consequences for this country’s economy. Aznar and Rey discussed the economic dimensions of this crisis in the context of Spain and the financial markets; the possible response of central banks, governments and public authorities; and how the public should behave so as not to exacerbate this issue. The coronavirus outbreak is first and foremost a human tragedy, affecting hundreds of thousands of people.
Economic turmoil associated with the coronavirus pandemic has wide-ranging and severe impacts upon financial markets, including stock, bond and commodity (including crude oil and gold) markets. Major events included the Russia–Saudi Arabia oil price war that resulted in a collapse of crude oil prices and a stock market crash in March 2020. The United Nations Development Programme expects an US$220 billion reduction in revenue in developing countries, and expects COVID-19’s economic impact to last for months or even years. China’s economic growth is expected to slow by up to 1. 1% in the first half of 2020 as economic activity is negatively affected by the new coronavirus pandemic, according to a Morgan Stanley study cited by Reuters. But on 1 February 2020, the People’s Bank of China said that the impact of the epidemic on China’s economy was temporary and that the fundamentals of China’s long-term positive and high-quality growth remained unchanged.