The severity of damage brought by Covid-19 will be based on how fast the virus would be contained, the measures that authorities are taking in containing it and to how much economic support the government will deploy.
In fact, the early indications of the impact of Covid-19 on Chinese market and economy as a whole were worse than what is initially expected. Surveys of services and manufacturing sector have plunged to an all time low late in February, the sales in automobile industry plummeted to 80% and export dropped to 17.2% in the first quarter of the year. With this negative impact in the economy as a whole, many of the Chinese investors and market were considering lån uten kredittsjekk 20 år anmeldelse.
Though according to official reports have confirmed that the widespread slowdown in economics have foreshadowed low levels of pollution as well as depressed shipping traffic among several informal barometers.
Most Vulnerable Sectors and Economies
The outbreak of Covid-19 shocked demand and supply which reverberated not just in China, but in world’s economy. One of the major economies that were impacted outside China are:
- Australia and;
- South Korea
The major European economies are likely to suffer from dislocations as the countries begin to adapt to restrictive responses and the continuous spread of the virus. All of this is done with an effort to curb all manufacturing activities at regional hubs which include Northern Italy.
Because of depressed activities, the UN is projecting that the flow of foreign direct investments may fall anywhere between 5 to 15 percent to its lowest rate since the financial crisis of 2008 and 2009.
How is the Financial Market Impacted by Economic Slowdown?
With the fear of an even broader and farther outbreak along with its economic impact, to various financial markets and not to mention, international indices are closing to bear market spectrum, declining at around 20% as investors are processing the low corporate earnings that’ll be brought by the virus. As a matter of fact, S&P 500 have fallen to 7% in opening of the March 9 session which have triggered a “circuit breaker”; otherwise known as the brief suspension of trading for the first time since the session of 1997. All in all, the index is down by around 17% after hitting a record high back on February.
Just one thing is for certain, the longer the virus is out and continuously spreads, the more company and economies will be impacted.