Every Economy has three questions to answer which reflects the strength of their economic system i.e., what to produce, how to produce and who receives the output of production. We learnt this in economic sessions in our 20s :) To answer the strength in today's world is being qualified with home isolation, early supply of vaccines to targeted individuals, social distancing, strategies to reduce moralities and demand for healthcare. If any economy fails to absorb these, failure would be the baseline for the pandemic.
Every eye around the world has witnessed the high volatility in the markets starting from March 2020. Pandemic situations spread fear in investors around the globe that it will destroy economic growth.
Where the FTSE Index (In UK) and Dow Index (In US) saw the biggest quarterly drop in 1st quarter since 1987 along with different market index and stock falls.
2. Crude Oil Industry:
One of the most impacted industries due to C-19, where demand for oil has dried up due to lockdowns across the world. Brent crude price dipped around $20 in April (which is used outside the USA in the world) and WTI Price turned to negative for the 1st time in history. The WTI futures contracts with May expiry fell by 300% to trade on NYMEX in April 2020 where in India, MCX had to settle at just INR 1 per barrel, that shows it was not prepared for unusual volatility in International Markets.
A short take - There is no difference between a Developed vs Developing Country now to predict any new virus hitting the future - Do you see ? Markets are emotional, consumers sets new trends and uncertainty is felt right up to the bottom.
3. Traveling Industry:
To limit the spread of C-19, countries posing strict restrictions from suspension of flights to border closure. In UNWTO report, restriction imposed by countries are segregated in four broad categories where, of total 217 counties are reported as
97 countries implemented total or partial border closure
65 counties suspended flights totally or partially
39 countries implemented border closure for specific group of destinations
16 countries implemented other measures
Last year in India, total foreign tourist arrival stood at 10.9 million with Forex earning around 210,971 crores. But due to travel restriction and lockdown in India from March 2020, Tourism industry expects to witness the sharp negative impact.
FAITH (India) in May 2020, shared the loss guidance for Tourism’s economic value at risk at around INR 10 lakh crore with Govt. for the survival of the Tourism and hospitality sector in India.
The Last Lines ~
Without the use of Machine Guns, we are seeing downfall in major sectors. In our upcoming articles, we are going to bring three more sectors plus positive impacts in our lives. Follow us and let us know, if you are keen to read summarized articles like this.
Stay Classy !
This Blog shortens the detailed topics to help readers and does not give any sort of opinions.
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