Post Coronavirus - The Economic Impact - Part 2
In the second blog of the duology exploring the disparate footprints being left by the coronavirus, I will be focusing on the various economic impacts that has been caused by it.
The virus has caused a global recession that can only be comparable to the Great Depression of 1929. It has led to 100 million people losing their jobs globally and countries have had to close down their economies in order to tackle the virus. The stock market had crashed in February, although it had risen up in May because out of the 5 investing options(Stock Market, Gold, Bonds, Mutual Funds and Real Estate), the 4 apart from gold were on a downturn too. Hence, investors had little other choice rather than investing in the stock market. Most sectors have been impacted in a negative manner mainly due to the business restrictions that the governments have imposed upon their country.
Among the sectors which have been hit hard is the Information sector, where 254,000 people lost their jobs in the U.S.A alone. This is a huge problem because with AI and IoT(Internet of Things) being the main focus in the future, the companies in the information sector are the ones who develop the hardware and software for it. Hence, the decreased workforce could mean that the rate of progress of these projects could be slowed down. Another sector which has faced a huge setback is the Automotive industry. Even prior to the spread of the virus, global sales of this industry had already been on a slump. Due to the lockdown imposed on many countries, the demand for automobiles dropped drastically because people were not allowed to go outside. Furthermore, the automobile companies were forced to temporarily close down their factories in some countries. This has led to companies having to lay off their employees; both designers and the workers in the factories.
However, the sector which has been impacted the most by the coronavirus is the Lesiure and Hospitatility industry. Due to both international and domestic travel being significantly, if not completely reduced, many hotels had to shut down because they were unable to bear the expenses without the usual footfall of customers. Furthermore, as mentioned in my previous blog, more people have started to order from restaurants rather than going there. Although this has helped the restaurant industry, even they have faced huge losses. In fact, the leisure and hospitality industry lost 7.7 million jobs in the U.S alone, out of which 5.5 million were the jobs of chefs, waiters and other restaurant staff. This is a horrifyingly massive number because 7.7 million jobs account for 47% of the entire hospitality workforce of the U.S!
In this blog, we studied the cases of three sectors, Information, Automotive and the Leisure and Hospitality which have been tremendously impacted by the coronavirus. It is not clear whether if these sectors will recover in the future, although this can be possible with appropriate funding and promotion. At times like this, it is only when the world joins hands that we can tackle such problems. Thank you for reading this blog😀
The virus has caused a global recession that can only be comparable to the Great Depression of 1929. It has led to 100 million people losing their jobs globally and countries have had to close down their economies in order to tackle the virus. The stock market had crashed in February, although it had risen up in May because out of the 5 investing options(Stock Market, Gold, Bonds, Mutual Funds and Real Estate), the 4 apart from gold were on a downturn too. Hence, investors had little other choice rather than investing in the stock market. Most sectors have been impacted in a negative manner mainly due to the business restrictions that the governments have imposed upon their country.
Among the sectors which have been hit hard is the Information sector, where 254,000 people lost their jobs in the U.S.A alone. This is a huge problem because with AI and IoT(Internet of Things) being the main focus in the future, the companies in the information sector are the ones who develop the hardware and software for it. Hence, the decreased workforce could mean that the rate of progress of these projects could be slowed down. Another sector which has faced a huge setback is the Automotive industry. Even prior to the spread of the virus, global sales of this industry had already been on a slump. Due to the lockdown imposed on many countries, the demand for automobiles dropped drastically because people were not allowed to go outside. Furthermore, the automobile companies were forced to temporarily close down their factories in some countries. This has led to companies having to lay off their employees; both designers and the workers in the factories.
However, the sector which has been impacted the most by the coronavirus is the Lesiure and Hospitatility industry. Due to both international and domestic travel being significantly, if not completely reduced, many hotels had to shut down because they were unable to bear the expenses without the usual footfall of customers. Furthermore, as mentioned in my previous blog, more people have started to order from restaurants rather than going there. Although this has helped the restaurant industry, even they have faced huge losses. In fact, the leisure and hospitality industry lost 7.7 million jobs in the U.S alone, out of which 5.5 million were the jobs of chefs, waiters and other restaurant staff. This is a horrifyingly massive number because 7.7 million jobs account for 47% of the entire hospitality workforce of the U.S!
In this blog, we studied the cases of three sectors, Information, Automotive and the Leisure and Hospitality which have been tremendously impacted by the coronavirus. It is not clear whether if these sectors will recover in the future, although this can be possible with appropriate funding and promotion. At times like this, it is only when the world joins hands that we can tackle such problems. Thank you for reading this blog😀
Truly Impressive!!! I am overwhelmed by the research and study you did for this beautiful article.
ReplyDeleteYou are right about the impact on these 3 sectors.Though my thoughts as I briefly hinted in your previous article are that, these events will open up new avenues for e.g. if I could take information sector (being biased as it also the our survival pod) - I expect a boom on virtual reality space with decentralized work-office model, virtual tourism etc. and the cascading impact it could bring,
It is intriguing and making me restless :-))