The spread of coronavirus has drastically increased over the last few months of its breakout to the point that every individual and government are running helter-skelter to curb the spread of the menace and the sad truth is that it is now affecting the global markets.
According to research, almost 13,000 new cases of coronavirus are springing up on a daily basis across the country and it is really growing so fast that five of the cases was confirmed at the early hour of Wednesday in Nigeria and it will continue to eat deep and affect businesses and marketers dealing with the stocks markets across the globe.
The United Nations Trade and Development Agency (UNCTAD) on Monday says the slowdown in the global economy caused by the coronavirus outbreak is likely to cost at least $1 trillion. Therefore the United Nations is calling on governments to take urgent steps to reduce the economic impact.
It stated, “apart from the tragic human consequences of the COVID-19 coronavirus epidemic, the economic uncertainty it has sparked will likely cost the global economy $1 trillion in 2020.” To counter these fears, UN insisted “Governments need to spend at this point in time to prevent the kind of meltdown that could be even more damaging than the one that is likely to take place over the course of the year”
Further studies revealed that in total the COVID-19 will cost the global economy a total sum of $2.7 trillion with experts saying the countries will be going into an economic recession period and it won’t only affect losing of traffic and conversion but people will even lose money in the process.
I know it is no longer news that the Nigerian government has on Friday, March 20, 2020, stop airlines from coming into the country so that they can in one way or the other curb the spread of the virus to a manageable size.
Apart from the Nigerian government, I know many other countries may also have made this decision, imposing much-needed restrictions to slow the spread of COVID-19 but certainly, it will affect the marketing operation in different countries because they won’t be a free flow of movement and goods through importing and exporting by these supplies of products will continue to reduce gradually around the world.
And if this is happening, there will surely be inflation because those who still have the goods in their warehouse will want to inflate the price to bring about scarcity in the country. But it will be nice if marketers can avoid exploiting people through the coronavirus situation to make a quick buck.
However, even if the outbreak of the virus slows down in all countries like China, trust me businesses are still going to struggle for a while before they can stabilize back to their initial position.
According to studies carried out by researchers, Coronavirus caused the retail sales of China to drop by 20.5% and the unemployment rate to increase to 6.2% in February 2020. Take for instance, if companies like Apple shut down their stores to help reduce the spread, it means less income and less profit.
Companies like the travel agency/travel industry, airports, ports, and airlines will temporarily shut down due to this viral virus. In fact, the Virgin Atlantic just asked their staff to take an 8-week unpaid leave and the ports are also empty to the point that the first rounds of layoffs have already started.
A billionaire investor, Carl Ichan in his speech said that the market has more room to go down and we should expect sell-off due to the viral virus.
That is why during an economic downtown, you will get to know that businesses have less competition/competitors compare to when there is stability in the economy. This means it is faster and easier to get results and turnovers during a period like this.
The spread of coronavirus is the most serious global health security threat in decades. Our hearts go out to all who have been affected by the outbreak, and we are deeply grateful to the thousands of healthcare workers who are on the front lines helping their communities.