The coronavirus outbreak is foremost a human tragedy, hitting hundreds of thousands of people every day. It is also impacting the world economy every day. In this article, we will show you the impact of coronavirus on the business sector, economy, IT sectors, jobs, etc.
WHO declared COVID-19 a pandemic on March 11, 2020. In its message, it balanced the certainty that the coronavirus (SARS-CoV-2) will unavoidably spread to all parts of the world, with the observation that governments, businesses, and individuals still have much ability to change the disease’s trajectory.
In response, to stop spreading coronavirus dynamically many countries’ governments announced complete “Lockdown” in their respective country. All governments requested to all their citizens to stay safe in a home for a few weeks or months to control spreading.
Impact of “Lockdown” on the Business Sectors, IT sectors, and Economy:
Most of the countries are not able to achieve the same rapid control that China managed. In Europe and the United States, the frequency is high but continues localized, partly because individuals, firms, and governments take strong countermeasures. This virus spread in Africa, India, and other densely populated areas, but the transmissibility of the virus decreases naturally with the northern earth spring.
Because of shutdown much greater shifts in people’s daily behaviors. This reaction lasts for six to eight weeks in towns and cities with active transportation, and three to four weeks in neighboring towns. The resulting trade crash cuts global GDP growth for 2020 in half, to between 1 percent and 1.5 percent, and represents the global economy into a slowdown, though not recession.
A global slowdown would affect small and mid-size companies more severely. Less developed economies would hurt more than advanced economies. And not all sectors are equally affected in this shutdown. Service sectors, including aviation, travel, and tourism, are likely to be the hardest hit because to stop spreading of the virus. Airlines have already experienced a higher loss(especially in Asia–Pacific). A wave of consolidation was already possible in some parts of the industry; COVID-19 would serve as an accelerant.
In consumer goods, the steep fall in consumer demand will likely mean delayed demand. This has implications for the many consumer companies that operate on thin working-capital margins. But demand returns in May–June as concern about the virus decreases. For most other sectors, the impact is a function primarily of the fall in national and global GDP, rather than a direct impact of changing roles. Oil and gas, for instance, will be negatively affected as oil prices stay lower than expected until Q3.
For many companies around the world, the most important point from the first ten weeks of the COVID-19 outbreak has been the impact on supply chains that begin in or go through China. As a result of the factory shutdowns in China during Q1, many disruptions have been felt across the supply chain, though the full effects are of course still unclear.
Trucking capacity to ship goods from factories to ports is at about 60 to 80 percent of normal capacity. Goods are facing delays of between eight and ten days on their journey to ports.
Maybe the biggest uncertainty for supply-chain managers and production heads is customer demand. Customers that have prebooked logistics capacity may not use it, customers may compete for prioritization in receiving a factory’s output, and the unpredictability of the timing and extent of demand rebound will mean confusing signals for several weeks.
Inter countries’ supply chain also gets affected due to shutdown. Home deliveries and goods deliveries are suspended, because of this situation, many people are jobless.
Day by day the number of infected people are increasing all over the world. As we know coronavirus spreading very fast compare to other diseases. So to control this disease many IT companies proving work from home to their employees.
Many Companies start by drawing up and executing a plan to support employees that is compatible with the most conservative guidelines that might apply and has trigger points for policy changes. Some companies are actively benchmarking their efforts against others to learn the right policies and levels of support for their people. Some of the more interesting models we have seen include providing clear, simple language to local managers on how to deal with COVID-19.
Many mid and small companies are suffering from a lake of resources or decrease the number of contracts. To overcome this situation they are firing employees. And approx 20 to 30% are jobless just because of the tragedy.
Corona Virus affected the economy, business, and IT sector all over the world, We are facing the worst economic problem. And we don’t know how much time we have to wait to control this tragedy.