Coronavirus is also known as COVID-19. Its emergence in China was like child play that many thought it will only affect the public health sector. Little did we know that it will become the world’s biggest challenge.
It became a nightmare when it spread across continents at that moment different measures were put in other to curb the rapid spread of the virus to some part of the world that was yet to be reported.
As many were trying to understand what the outbreak was all about, the World Health Organization (WHO) pronounced it as an international health emergency and later a pandemic. It was then that other sectors started feeling the impact of the virus.
Today almost all sectors (from education to economic) are bleeding as a result of the impact of the virus. Currently, we have embraced a new lifestyle just to reduce the rate of fresh infection, and mortality.
Meanwhile, researchers are working hard to come out with possible vaccines. This article examines the possible impact of this novel pandemic on the industry’s business and economy.
What are the effects of the Novel COVID-19 since its emergence?
The economy of most industries during and after the outbreak of the public health crisis will be assessed below;
The Effect on Consumption
Due to the pandemic outbreak, the economist has envisaged a reduction in spending as the household is concentrating on the precautionary measures and lockdown of shops and industries that have limited consumer preferences.
Rising and falling food, and commodities prices impaired by interrupted logistics shackles, have limited household earning as well as expenses on non-edible commodities even more.
The Effect on Investment
Consequently, investment is curtailed, with businesses and industries encountering a new era of ambiguity having wriggled through the China-US trade war for the time being.
Costs related to the business’s quarantine – including the continuous wage disbursement and loss of manufacturing have bothered into capital, which would have been spared for investment.
Property expansion investments have been weakened, with the market call for home set to cool. However, the government-led investment and budgets for infrastructure are been diverted to wages and healthcare upturn to fight the global pandemic.
More so, private consumption has been softened due to industry retrenchment or a slice in wages. While public/government are funding medical suppliers, and healthcare, as well as facilities, are surging immensely.
What Is the Comeback Factor to the Pandemic-Share?
Different level of comeback factors have been applied by industries, the most essential is the digitalization of industry operations.
Industries are working very hard to see how their business will still be functional and also keeping contact with their esteemed customers, and this can only be done via digital maneuver.
Also, struggling businesses with cash flow as a result of quarantine policies are sourcing for support utilizing liquidity inoculations by the financial authorities.
What To Lookout For?
On the contrary, much rest on the government and the subjects on how soon they feel the wave of the pandemic is under control. Although the prolonged holiday has ended in some parts of the world, and many residents have resumed their duty post.
A correct comeback scheme will only be implemented once a vaccine is developed, then the quarantine processes will securely be suspended, and businesses, as well as consumers’ buoyancy, start returning in earnest.