More than three thousand people have died due to coronavirus in the world and about one lakh have been infected by it. With this, the transition of Corona is also overshadowing the world's economic health. It is having a negative impact on the global economy. On the other hand, the stock markets are seeing its impact, apart from which there is a decrease in sales of cars. It is important to understand how Corona is having an impact on economic activity and how it is having a double negative impact on an already sluggish economy?
Big concern for stock market
Investors are concerned about the coronavirus. There is a big change in the stock markets. This can be seen on pension and personal savings accounts. In the last week of February, the world's major stock markets performed poorly. This is the worst since the 2008 financial crisis. With this, there has been a slight increase in the European and American stock markets, since it has raised hopes that countries are intervening to protect the economy against the coronavirus.
Air flights from China decreased
ForwardKeys data shows that international flights booked from China are 55.9 percent behind in 2019 compared to the same period. UK travel industry experts have raised concerns about keeping Chinese tourists at home. According to Visit Britain, there were 4,15,000 trips from China to Britain over the year to September 2019. Chinese travellers spend more than three times the average during their UK travel. The industry could be affected if large-scale programs are cancelled.
Something good too Consumer goods giant Reckitt Benckiser has seen a surge in sales of Dettol and Lysol. Along with this, an increase in gold prices has also been observed. Gold has always been considered the safest in times of uncertainty. Investors see this as fears of the Coronavirus spreading outside China will further dampen demand with the global economy.
Factories hit slowdown China manufactures one-third of industrial manufacturing globally and is the world's largest exporter. However, in China, the workshop of the world, the Coronavirus has reduced the speed of factories.
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