The global experts are unanimous that the coronavirus has caused an unprecedented crisis, comparable in scale and gravity to the Great Depression from the 1930s. And despite being obvious that the end of the pandemic is far and the crisis is only beginning, investors and analysts already make forecasts and draw plans for recovery.
Since the beginning of this year the world is living under the threat of the new coronavirus SARS-CoV-2, more popular with the name of the illness it causes – COVID-19. It is dangerous both to the people and the economy and, though in the beginning the concerns about the economy were only moderate, in the past few weeks pessimism, at moments reaching apocalyptic forecasts, took hold of analysts, investors, business people (big and small) and common people alike. The questions which is more important – economy or health – spark fierce debates.
This is why we asked Martin Tarpanov – a professional dealer with over 15 years of experience, head of the Fixed Income Securities Trading department in Deltastock and member of the company board – for his views on the global economy, the measures and the consequences of the pandemic.
In the first part of the article we examined the effect of the coronavirus COVID-19 in China has on some of the neighbouring countries. In this we will turn our attention to the industries reaching far beyond China.
Since China produces all kinds of goods and components for other goods, the quarantine in Wuhan, which is a significant industrial and transportation hub, as well as the overall transport limitations, inevitably affect the production of almost everything – from smartphones, through automobiles, to medications.
The 2003 epidemic of the SARS coronavirus made 8098 people ill and killed 774 people in 17 countries, which makes up a 9.6% mortality rate and renders it considerably more deadly than this year’s coronavirus COVID-19 with its 2.8% (for now).
Just like SARS, COVID-19 first appeared in China and then spread globally. Just like SARS, the new coronavirus from Wuhan affects the global economy, but the similarities stop here.