This global pandemic had become one of the biggest threats to the global economy and financial market. COVID-19, the official term for the coronavirus, was first detected in Wuhan, China. Currently, the virus has infected over 134,000 people and killed almost 5,000 individuals. That being said, over 68,800 people have recovered from the virus.
On March 6th, 2020, President Donald Trump signed an $8.3 billion spending bill to fight COVID-19.
A decline in oil prices
The reduction of activity in the global economy has led to lower demand for oil, making oil prices lower. The reduction of oil demand because of the outbreak will result in a dramatic increase in supply.
A slowdown in manufacturing
As a result of the outbreak, China’s factory activity in February came in at a record low. The slowdown in manufacturing has negatively impacted the economies in Vietnam, Singapore, and South Korea, as their economies are so closely linked. Many experts say that the more COVID-19 spreads, the longer the manufacturing would remain slow.
Impact on the stock market
The stock mark has also taken a great hit as a result of the COVID-19 spread. The Dow was down more than 2,000 points, and the S&P was down 500.
As global authorities are recommending quarantine and self-isolation, many markets in the economy are struggling. Airlines have slashed flights, Disneyland park in Anaheim, California has closed, hotel revenues are plummeting, and the restaurant business is barely staying afloat. Airlines, amusement parks, hospitality, and dining makeup 5% of the U.S. GDP, according to JPMorgan and the Bureau of Economic Analysis. In our capitalist economy, the decline of revenue in these financial markets doesn’t bode well for the U.S. economy.
Tips to prevent the spread of COVID-19
There is currently no vaccine to prevent the spread of this virus, but the best way to prevent illness if to avoid being exposed to it. The virus is spread mainly from person-to-person: through being in close contact between one another (within 6 feet), or through respiratory droplets produces when an infected person coughs or sneezes.
1. Wash your hands often with soap and water for at least 20 seconds each time.
2. Avoid close contact, especially with people who are sick.
3. Stay at home if you’re sick.
4. Cover coughs and sneezes. EconomyEconomy
5. Wear a facemask if you are sick to protect others.
6. Clean and disinfect frequently touched surfaces. This includes phones, doorknobs, and keyboards.