As we all know, our favorite world is going through a very dark time due to the fatality of the worldwide Coronavirus Pandemic. With the passing time for the extreme worldwide ramifications of coronavirus; our entire political, economic, the societal structure is becoming affected severely. And the fear, insecurity, tension is spreading among every one of us, even faster than the virus.
Economic experts are anticipating the ramification of this situation can even surpass the fatality of 1930’s great economic depression. Historians are saying in the history of humankind; it is the first time that human civilization is being affected by a thing like this. The whole world is now shadowed under its fatality, and the worldwide lockdown, breach in communication have made the whole world paralyzed for the time being whose direct impact is mostly felt through the steady downfall of the economy.
Now it is really important to have a detailed discussion over the upcoming and ongoing massive Global Economic crisis due to Coronavirus Pandemic.
Global Marketing Policy Transform for the Coronavirus Pandemic:
1. Stock Markets Witnessed a Huge Decline:
Between 10th January and 16th March of 2020 world’s major stock exchanges like FTSE, Sensex, Dow Jones, NYSE, etc have gone through an average of 26% or 6.1K points decline. The US stock market witnessed a rapid 20% decline from its peak within only the last 15 days.
The coronavirus outbreak across the globe have hampered both the supply and demand in the local economy as a result of which the Global stock markets lost around $16 trillion within less than a month these severe losses are very evident for the worldwide economic recession. The huge gulf already created in the financial and economic sectors across the world is surfacing its weakness for Coronavirus Pandemic. The Nobel laureate economist, Joseph E. Stiglitz has already drawn similarities with the 2008 Great Recession and regretted saying that in many ways, it’s far worse than 2008.
2. International Price Rising:
In the first place, the countries are US, Europe, and others now heavily investing in COVID-19 testing, tracing, and treatment measures enforced quarantines and a complete lockdown which is now implied in various countries of Europe, Asia and America. The recent statistics show that the Coronavirus Pandemic in India will cause a minimum decrease of 30% in the hiring of global IT firms in India.
Above all, we are almost forgetting that the person belonging to the lower section of society’s pyramid will suffer from wage loss due to the sudden implementation of lockdown. Primarily, for the blue-collar laborers of the country, this situation is going to be really hard. So, naturally for an entire breach in the economy will result in the International price rising.
3. Change in the Model of Workplace Management:
We are in the 21st century’s era of digitalization; businesses around the globe are adopting preventive measures that can go on despite minimum physical interaction. The forced quarantines throughout the countries will lead to behavioral changes, and it will also become very necessary to adopt various remote working tools for long term needs. Companies are involving their employees to join virtual meetings using digital communication mediums such as video conferencing, skyping and teleworking, etc.
Another very important thing is after everything returns to its normal order, the business owners, corporates and startups all need to adopt mandatory sick leave policies. The policy must include any health issues like flu and fever, which are highly ignored especially in countries like India by the small and midsize business (SMB) authorities. Overall adoption of such health measures will improve the environment in the workplace and also the owner and employee relationships. With the growing necessity for maintaining this lockdown by keeping yourself safe in your home to fight the further severity of COVID-19, the adoption of tech-based enterprise is going to increase and open a new avenue for the tech-based workplace in the market of India.
Various Sectors of Marketing, as well as Society, are getting Topsy-Turvy:
The World Health Organization (WHO) officially called the Coronavirus Pandemic as a global pandemic on the day of 11th March; the reason is by then the outbreak has spread to 100+ countries. Many countries occupying a large economic sector, such as the US, Italy and Spain, have had to apply the quarantine policies immediately. But still, more than 12k people in Italy, around 5k people in America have already died. This has naturally resulted in business activities in almost every economic sector.
Major events like the Russia–Saudi Arabia oil price war are now resulting in a complete collapse of crude oil prices and an inevitable stock market crash in the toughest month of March of this year. The blue-collar workers of the society or the laborers are going to deal with a severe wage loss, unemployment, etc.
Between January and February of 2020, Coronavirus Pandemic has resulted in the unfortunate increase in the number of urban jobless people approximately more than 5 million. The economic condition and GDP in India were already falling apart; now the coronavirus pandemic is only adding fuel in this fire of decay. By the end of March 2020, the number of jobless claims in the US increased to 3.3 million from the 282 thousand of the previous week.
1. Impact on Entertainment Sectors:
Across the world, various theatres, multiplexes have started being closed since the beginning of March 2020. Various festivals are canceled, film releases, shooting have been postponed, and this resulted simply into the global box office drop by billions of dollars. At the same time, streaming of Netflix, Amazon prime became more popular, but the earning of film exhibitors dropped dramatically.
2. Impact on Sporting Sectors:
In the matter of the Global Economic crisis due to Coronavirus Pandemic, the cancellation of various big sports events like the International Olympic has affected visibly. Just like the condition after world war2 a very significant disruption to the worldwide sporting calendar has occurred due to the postponement or cancellation of varying degrees, sports events tournaments. For example, on the day of 13th March 2020, FIFA announced that clubs could stop releasing players for the national teams during March and April 2020, and the players were also allowed to decline a call-up without any consequences.
On the same day, the Board of Control for Cricket in India (BCCI) has decided to postpone the beginning of 2020 Indian Premier League. Later that day, they canceled the ODI matches between India and South Africa during March 15 and 18, which were before announced to be played without spectators in an empty auditorium.
3. Impact Over-Tourism, Transportation, and Airlines:
Since the official lockdown has been declared due to Coronavirus Pandemic people are restricted to travel, the most affected sector is tourism and transportation. In most of the world’s important countries, especially Europe, which is the most affected part till now, planned travel went down from 80-90% to almost nothing. Now the whole tourism industry of the world runs into unemployment and bankruptcy.
From 11th March in the US all the entries of foreign nationals had been ceased who had visited China, Iran and a group of European countries during the previous 14 days. The ban was later extended and imposed in various other countries like India, U.K. or Ireland. In China, all the foreign travelers are sent for a 14-day quarantine period at an assigned location.
The Critical Global Economic Crisis due to Coronavirus Pandemic by Region and Country:
Coronavirus pandemic has led to a discussion of recession in the US, along with the resultant stock market crash and other fatal economic impacts. According to an analysis by NYT, insurance premiums may rise by 40% next year because coronavirus costs out of the account when setting 2020 premiums.
The death toll in the US has already crossed the number 5000 and the total healthcare costs due to COVID-19 could be anywhere from $34 – $251 billion according to the analysis. A huge number of people have already started applying for unemployment insurance, the rate of increase is 70,000 or 33%, the biggest amount since 1992.
In the matter of the Global Economic crisis due to Coronavirus Pandemic, all the European countries are nearly collapsing. In Italy, the death toll has already exceeded fifteen thousand; every day, 800-900 people are dying. According to the Deutsche Bank, the Coronavirus pandemic may contribute to a recession in Germany. On 5th March, British airline Flybe ultimately collapsed into a loss of 2,000 jobs after failing to maintain minimum financial stability.
Flybe provided huge earning for the UK in the sector of English airlines. Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), told a very motivating statement for the world. She said that humans would be facing an immeasurable cost due to the coronavirus pandemic. And to protect people and restrict the economic damage, all countries must work together unanimously. This is a moment for solidarity.
The economy of China has been anticipated to grow from 5.6% to 5.9% for 2020, which is the worst-case scenario of the Chinese economy. The entire existence of the Chinese box office was wiped out as the total 70,000 theatre screens in the country were shuttered completely. The tourism of China was hit hard by the tendency of self-isolation, fear of contagion and imposed restriction on traveling.
The schools, universities are all closed, and the international students come back home as soon as they can due to the fear of contagion. But, it also resulted in severe cases of worldwide contamination. As the economy of China was already a bit stable, that’s why on the day of 1st February 2020, the People’s Bank of China stated that the impact of the COVID-19 on China’s economy was for just a time being and their steady economic growth will remain unchanged due to the long-term fundamentals of their stable economy.
All the exchanges between neighboring countries like Hong Kong, Japan, Korea, and China have been disrupted. In Hong Kong people started to protest against mainland China with their issues based on not letting all mainland Chinese travelers enter due to their fears of viral contamination from the mainland Chinese people. Since the outbreak of the COVID-19, various countries across the globe are facing a shortage of vital products including face masks, sanitizers and disinfectant products.
An ongoing period of panic buying not only in Hong Kong but also in various other countries has also caused many stores to be emptied of various vital non-medical products such as bottled water, vegetables and rice. In Japan, the outbreak caused the cancellation of the 2020 Summer Olympics which was previously scheduled to be organized in Tokyo from the ending week of July. On 5th February 2020, the famous Hyundai Motor Company of South Korea had to suspend production in this South Korean region due to the shortage in supply of parts. Including the shutdown of all academic institutions and working sectors, the South Korean economy is down at 1.9%, from 2.1%.
India, another very significant country of economic transaction worldwide, has also gone for complete lockdown since 22nd March till 15th April. Already the major supply chains of pharmaceuticals, fertilizers, automobiles, textiles and electronics were disrupted. Then, from 19th March, the Indian government has banned the export of important medical equipment, surgical/disposable masks. Since this Coronavirus Pandemic now hits more than 2k Indians, the
The Indian government has decided to export a good number of ventilators to shelter the affected. Various other south Asian countries are now anticipating that the Coronavirus pandemic would extremely affect the country’s GDP, major business investment flows, the minimum prices of commodities and the tourism business resulting in a Global Economic crisis more severe than 2008’s economic downfall. Another Asian country Iran was severely affected by 31st March 2020, according to the Ministry of Health total of 2,898 COVID-19 deaths took place with 44,605 confirmed infections.
The whole world is now cast under the dark shadow of this disease. Let the whole humanity be together to fight COVID-19 and finally “We shall overcome”.