Shockwaves to Global Economy with Rising Coronavirus Crisis in World's Manufacturing Hub

Publisher: The Insight Partners

2020 may perhaps has taken the world over the verge of next global plague. Up to now, the Wuhan coronavirus outbreak has infected more than 2,000 people – killing nearly 81. It has now started spreading all across the globe with cases reported in Australia, East Asia & the United States.

Global stock markets have tumbled as investors are getting increasingly anxious regarding the economic as well as financial impact of the Wuhan coronavirus outbreak that was instigated in China and is now spreading worldwide.

As the virus rages on, authorities fear that it might transmute into a more lethal and fatal forms. Moreover, experts said that it is not like the SARS virus, another coronavirus that got originated in China nevertheless was not this contagious in the course of its incubation period.

The government of China in an effort towards stemming the spread of virus has extended the January 24 to January 30 Lunar New Year holiday by 3 more days. This is mainly to discourage persons from traveling all together as tens of millions people who went to visit their homes or another tourist places were supposed to return back by this week. The outbreak has badly impacted the tourism-related business as this period of the year is usually known as busiest travel season of China, with more than seven million people likely to have made plans for traveling abroad. In addition to China’s tourism business downfall, Japan’s tourism-related businesses is also likely to experience a decline followed by Yen getting weaker trading session.

In a nutshell, the economic impacts that is already being experienced in China, which is the epicenter of virus outbreak will possibly hurt the earnings of Japanese corporations along with the fear amongst the investors that will again result in sliding stock and oil prices. However, economists are very cautious in terms of putting any numbers over the situation as of now.