COVID-19 Economic Impact

The major impact of COVID 19 will be seen on Tourism and travel related industry.

Most of countries are implementing strict restrictions on travel to other countries and closing their airspace to other countries. The outbreak has brought fear among the people of traveling to other countries. If the outbreak continues and cases rises, any business activity that involves travel and people meeting at one place will be heavily affected. Restaurants, colleges, schools, sport events, concerts, business conferences have been closed and cancelled around the world. Such gatherings and assemblies have already been restricted and regulated in China, India, South Korea, Italy, Iran, Japan and Switzerland. According to United Nations 90 % of the world economy has been under some form of confinement, witnessing disturbed supply chains, falling consumer demand and unemployment.

Manufacturing Sector will witness production fall (at least temporarily in some regions).  The manufacturing facilities in severely hit areas or quarantine areas will struggle to maintain steady production rate. Employees will be unable to get to work because of confinements in their residence areas. Other businesses located outside of quarantine zones will also see production decline if the supply chain for raw materials and other component procurement is delayed or broken by production halts elsewhere. With the large-scale restrictions of economic activities and heightened uncertainties, the global economy has come to a virtual standstill in the 2nd quarter of 2020

Countries are offering fiscal stimulus to revive the economies. However the stimulus is uneven across the world and many developing countries are failing to offer necessary packages. Countries are facing sharp decline in revenue generation from export, manufacturing, new borrowing and remittances.


In any event, unless there are major breakthroughs in vaccine development, economic activities will remain significantly limited and any fiscal measure will be unlikely to be fully effective in stimulating investment and growth. We have off the shelf reports to deal with the COVID 19 impacts on wide range of industries.