The Future of Global Market Uncertain Due to Coronavirus Impact
An ongoing global epidemic has changed the lives of many for the worse on both micro and macro scale.
Now, seeing as how we live in a hyper-connected world, it might be quite logical to assume that this will impact the global market. After all, every crisis affects it in one way or another, however, there are some market occurrences that we’re just starting to feel, yet, which might greatly impact our lives in days and years to come. All in all, here’s what we know today about the uncertainty of the future of the global market, due to the impacts of coronavirus.
Panic causes a stock market crash
As always in the past, whenever there’s a moment of crisis, people start doubting institutions, currencies and stocks, which makes them want to liquidate their assets and invest in commodities. Anxiety, global hysteria and panic are always followed by a market crash but the individuals are not the only ones affected. A lot of companies are also uncertain about their future, especially those that heavily rely on production or are outsourcing to areas that are currently undergoing various quarantine laws. All in all, this is something that’s expected to take place in the future.
The manufacturing industry
One of the biggest problems with the manufacturing industry lies in the fact that it relies on a large amount of workforce concentrated in tight areas. At the moment, a lot of countries are trying to fight the global epidemic by prohibiting these kinds of gatherings, which has forced many factories to either close down completely or reduce the number of work hours. This particular problem will soon be felt both in revenue that these companies draw, as well as in the shortage of products that are getting produced in this limited period.
The biggest upset is, naturally, expected in the medical industry, mostly due to the fact that there’s an ever-growing need for medical products such as respirators and ventilators, as well as some simpler items like surgical masks and hand sanitizers. Other than this, there’s also a massive financial influx in the field of medical research in order to decode the genome of coronavirus and develop a necessary vaccine. This king of increase of investment is definitely a positive trend, however, whether this trend will be continued after the epidemic is over is quite questionable.
The transportation industry
Another thing that needs to be taken into consideration is the fact that, even amidst this crisis, there’s a need for the delivery and warehouse industry to be fully operational. In fact, even some of the countries who have hermetically sealed their borders are allowing for cargo deliveries, seeing as how this is the bloodline of the modern civilization. This is why the concept of logistic management will play an even bigger role in the coming days, in order to provide a more effective system in the service of the greater good. The services of industry veterans here will be quite high.
The job market
When it comes to the individual concern, a lot of people are afraid for their jobs, seeing as how a lot of entrepreneurs are unable to maintain their current workforce (even with the best of intentions). Paying salaries and overhead without the production to refill one’s budget is a mission impossible, which is why, even today, there’s a growing number of people losing their jobs. No one can tell for sure how long it will take for the unemployment rate to reach its pre-corona status, once this situation is over.
The housing market
The housing market, real estate market, the construction industry and the rental industry are all affected by what’s going on in the world, at the moment. On the one hand, people are losing their jobs or at least receiving a reduced income (due to the fact that they’re either not working or working from home). However, they’re still expected to pay for their rents and mortgages. Ideally, the crisis would spike a huge number of cases of solidarity in landlords all over the world, still, this is not likely to be the case. Where the situation goes from here remains to be seen.
Emergency universal basic income
All that we’ve discussed previously has sparked a debate of whether there should be an emergency universal basic income that every person in quarantine should receive. There are some who are arguing the fact that this is something that everyone should receive in order to reduce potential errors, provide immediate aid and achieve a higher level of social cohesion. Nonetheless, this is opposed for several reasons, ranging from the question of whether the government can actually handle it, all the way to whether everyone needs it, to begin with. Needless to say, this is an ongoing debate that is unlikely to be settled in the next several days.
Of course, not everything is grim from the economic and industrial standpoint. For instance, the drop in production has marked a significant improvement when it comes to the situation with global pollution. Still, at the very moment, the situation revolving around health is the top priority. At the time, the majority of people are afraid for their own lives and those of their loved ones, that they’re completely ignoring the state of the global market. The repercussions, however, will be seen in the nearest future and, at this moment, things are not looking good. Fortunately, the recovery (of both humanity and the global market) is more than imminent.