COVID-19 is an unprecedented public health emergency affecting almost every industry globally. In past weeks, we have seen a lot of the significant economic impact of the COVID-19 on financial markets and industries such as manufacturing, hospitality, travel and tourism.
Travel and tourism account for 10% of the global GDP and 50+ million jobs are at risk worldwide due to the coronavirus. A global tourism, travel and hospitality company closing down affects small & medium sized enterprises (SMEs) globally.
This, in turn affects many people, typically the least paid and those who are self-employed or working in informal environments or in part-time work with zero-hours contracts.
Governments of many cities have announced economic measures to safeguard jobs guarantee wages and support the self-employed, but there is a lack of clarity in many areas about how these measures will be implemented in a specific period of time and how people will manage a loss of their income in the short period of time.
In the current financial year India’s GDP growth may slide to 1.1 per cent, on account of the impact of COVID-19 outbreak on the economy all over the world.
The economic growth rate during 2019-20 is estimated to come down to 4.1 per cent from 5 percent projected by several agencies before spread of the deadly virus all over the world, and it affects more than 2.5 million people around the worldwide and took lives of over 1,70,000 people.
Industry Impact-
COVID-19 affects almost every industry globally.
- Some organizations have better plans to defend this crisis while some will struggle to reset to a normal business they have that is constantly re-designed and re-planned according to the situations of the business.
- Demands of the customer pattern have changed by this.
- Supply chain have routed globally. Also, most important Governments make more significant interventions day by day according to the situations.
- By this companies have to continuously adapt to the new technologies, uncertain change in the market conditions and make a new plan.
The COVID-19 pandemic remains a health and humanitarian crisis, but the business impact on companies is now profound more. As governments make significant interventions in response to the coronavirus, businesses are rapidly adjusting to the changing needs of their people, their customers and suppliers, while navigating the financial and operational challenges.
Global and Domestic Demand-
COVID-19 affects almost every demand domestic and global.
- Due to COVID-19 the demand of the products and services has make major affects in both domestic and globally. Low profitability production disruptions impacts business sentiments and investments.
- Loss of employment, especially in the informal sectors, contractual workers, and daily wage workers reduces consumers spending.
- Hospitality and Aviation sectors are affected the most at a short span of time.
- Demand in top few export destinations like China, UK, US and Europe accounting for 40% of India’s export is severely hit.
- Human Resources firms are also face some major affects in Business. Because the candidates not want to change their current organizations at this span of time.
- Reduced wealth effect due to falling share prices.
The year 2020 could see the worst global economic fallout since the “Great Depression” in the 1930’s with over 170 countries likely to experience this negative impact.
Today, the world is confronted with deadly virus crises like no other. COVID-19 has disturbed our social and economic order at lightning speed and on a scale that we have not seen in living memory.
The virus is causing a tragic loss of thousands of life, and the lockdown needed to fight it back also it has affected billions of people with their business as well. What was normal just a few weeks ago – going to school, going to work, being with family and friends is now at a huge risk.
The “Great Depression” was the worst worldwide economic downturn that lasted for 10 years from 1929, beginning in the U.S when the New York stock exchange on Wall Street crashed and also wiped out millions of the investors worldwide.
This is especially true for retail, hospitality, transport, travel and tourism. In most countries, the majority of workers are either self-employed or employed by small and medium-sized enterprises. These businesses and workers are especially exposed.
Steps needed to minimize the impact on the Industries-
- Ensuring availability of the stocks.
- Facilitating the E-commerce.
- Facilitating the Social Media.
- Target online customers.
- Make a plan to defend the crisis.
- Boosting the non-urban consumption.
- Assisting better logistics.
- Delivery on time.
- Offer unified solutions.
