These days people from all around the globe are fearing for their lives. Whereas, the even bigger dilemma is that this novel Coronavirus will bankrupt people at a more substantial rate rather than kill them.
Precisely, if the virus infects you, not only will it pose a threat to your health, but it will also stop you from going to work. Moreover, it will also affect fluent running businesses. Consider the situation, that if you get infected, subsequently, your work will stop. And as you pay for the medical bills and necessary charges, you will slowly progress towards bankruptcy. What’s even more worrying is that the governments around the globe are considering it a health crisis and not an economic one.
Coronavirus: A Threat To The Global Economy!
Media reports depict that within this week, the economy observed a loss of Trillion of Dollars. Importantly, American politician, Joe Bidden analyzed that the novel virus is surely a threat to Donald Trump’s chance of being re-elected.
In the process of crippling the economy, it seems that the Coronavirus has somehow aligned itself parallel to the recent crude oil crisis. Nevertheless, the Saudi Arabia-Russia crude oil dispute was responsible for the global stock market crash.
For starters, the drying of supply chains is causing businesses, running on smaller levels, to struggle. Without a doubt, the closure of factories in China resulted in lower level of output in the country’s Purchasing Manager’s Index.
The example of Italy is the best to quote here. With the largest number of people infected, the country with the ninth-largest economy is currently observing lockdown.
Pretext Behind The Global Economy Crisis!
Statistics indicate that with the crude oil feud, Moscow and Riyadh can bear the 30% nosedive in oil prices. However, gas stations in America cannot. It means that the oil sector in US cannot survive at low prices. Consequently, this will lead to shutdowns and people losing their jobs.
In order to survive this economic dilemma, President Donald Trump has increased payrolls for hourly workers so that they can survive through this time. Additionally, chancellor of the UK revealed a ‘Coronavirus Budget’ to properly deal with the situation.
Moreover, emerging superpowers Russia and China desire to mould the global market by levelling the power balance to their advantage. That’s why the US is not allowed to ally with Saudi Arabia to lead the oil markets.
Counteracting these problems can only be done by protecting the future of businesses. And furthermore, look for more opportunities to benefit the economic world.
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