“Between a Rock and a Hard Place”
After the lockdown in April, many businesses lost their chances at recovery and closed their doors permanently. The impact left no one behind, both small and big businesses suffered huge losses.
How the outbreak of Covid-19 affected the world
A huge amount of businesses worldwide depended mainly on Chinese products to run their business, so when Chinese companies shutdown, every business involved took a huge blow. Many people are still wondering whether real economic recovery is even possible. The coronavirus has shaken up the business world hard, and is still doing so.
Right before the total lockdown, people thought that the situation will only be limited to China and a few other countries that deal directly with it; however, that wasn’t the case, the disease spread to 188 countries in a short period of time causing everyone to impose drastic measures like forced quarantines and total lockdowns. Those extreme rules had a huge impact on supply chains, conferences, E-commerce businesses, retails, and much more. It might seem like most of the effects of the global pandemic are devastating, but the truth is a lot of sectors were impacted positively, especially digital entertainment websites, and service-based e-commerce businesses.
How dealing with COVID -19 after lockdown went:
1. Stock Markets
The virus’ effect dealt huge damage to all international stock markets, but especially huge stock markets were the most affected like Nikkei 225 – which represents Tokyo stock exchange-, Dow Jones Industrial Average – which measures the stock performance of 30 large companies listed on stock exchange in the United States- , and FTSE –which is a share index for the 100 companies listed on the London stock exchange. Those stock markets hit their lower overall during the last days of March when they went down to -35% in stock markets due to the growth of Covid-19 cases. That devastating blow still has its effect up to this day, as many of those stock markets are struggling to recover from those losses.
2. Local Markets:
The worst thing that happened to the market during the outbreak is the forced closure of almost every kind of business for the duration of the lockdown. That sudden unannounced closure of shops and restaurants caused many of small businesses to permanently close their doors to avoid further losses. Even giant retailers like J.C Penney, GNC, Pier Imports, Gap and many more were forced to completely shut a huge number of stores worldwide. Economists estimate that, by the end of 2020, more than fifteen thousand stores would have closed permanently. However, according to the above statistical data, that damage could last for more than two years, especially for the United Kingdom and Canada, as customers are still anxious about going out shopping.
When we speak about the period of the lockdown, we have to mention flights because many businesses were based on flights either for communication reasons, or for trade purposes. Before the pandemic, the number of daily flights could reach more than two hundred thousand flights. However, right after lockdowns, the number of daily flights dropped to almost a quarter of what was perceived in the previous years, which is a huge significant loss for aviation businesses worldwide in addition to lost opportunities for partnerships and trades. Those huge loses persists up until now as flights are still struggling to pick up the pace of the previous years.
4. Economic Status:
As mentioned before in our previous article, the risk of recession due to a global pandemic on the scale of the influenza pandemic in 1918 was huge; it was even predicted that it could lead to up to -5% losses in GDP. Covid-19 pandemic, however, exceeded the predicted losses in many countries around the world. IMF states that the global economy will shrink 3% as we face an economic depression greater than the Great Depression itself.
5. Oil Industry:
As many trade and travelling chances continued to shrink, the prices of oil continued to shrink as well. The oil industry hit its lowest by mid-April when the price of the barrel went as low as 20$ per barrel which is the lowest price seen in 18 years. Now, the crude oil price has hit $40 per barrel as huge oil producers like OPEC and Russia take a huge blow from the coronavirus pandemic.
6. Unemployment Rates: