Going viral: How Coronavirus affects global economy & how you can sail through

Interesting Jun 19, 2020

With the occurrence of a lockdown phase throughout all major markets in the world, it is quite obvious and daunting to have a curiosity about the far reaching effects of the Coronavirus on the world economy. The very clear effects being experienced in the suffering countries definitely includes lockdowns, panic buying activities, acute shortage of essential goods and commodities and thus resulting monetary effects on the capitalist, working class and directly or indirectly on every individual on the earth’s crust. But all these are the effects that are visible to the common man. The community that is centered around money has got some even more disturbing results, facts and predictions but also a thin silver lining in
these clouds of doubt.

The very first consequence of the coronavirus outbreak is the mammoth cut in GDP target prediction by some of the most reputed financial institutions globally. This may seem to be a colossal effect for layman but the class associated with these terms day in and day out know what a lasting effect it can have, to the extent of changing many centers of power in countries across the globe. With this possibility being coined up it puts the onus on me to bring to light the possibility and prediction that this virus could get the US president out of the white house! Yes you read it correct; predictions have been made by respected political experts, media professionals and political column editors of reputed media channels that this virus outbreak could do the same harm that hurricane Katrina did to George Bush. Well if that is the case then billion dollar investments, tie-ups, joint programs, partnerships and availability or denial of goods and services will be at stake, creating an environment of doubt and fear thus rupturing the buying and investing desires of the individuals who would prefer to keep their resources safe at the cost of low returns, resulting in a massacre of budding businesses and small players. This disaster is not only limited to the smaller ventures the bigger ones too are feeling the sting of this corona bane. With around 45% of international operations stalled, postponed, delayed or cancelled, losses have already run into figures that none of these organisations would have ever thought of. With earnings already down, the working class should expect both, mentally and financially stressed times ahead, at least for the next six months. But here comes the silver lining; in these times of fear the one who knows what to do and when, will be the beneficiary when others are counting their losses.

What I mean to say is that, this difficulty has come with an opportunity for many; the very first is the chance to oust their Chinese counterparts and competitors. We may not like to comment on this because of our liking towards Chinese manufacturing standards and methods but it is also true that coronavirus has harmed the Chinese reputation in international markets and if you know how to encash this opportunity, you have some big deals waiting for you. But one cannot deny that this pandemic has plugged liquidity flow and that will definitely lead to lesser input for operations. For the ones seeking the best bet on a commodity, be it real estate or some other, there will be a golden period for you as the bigger and stronger contenders for the same would have already placed their purchasing power into safe zones to escape the demon of uncertainty. So your competition for a purchase is reduced and if you know how to seal the deal and you have a chance to do that; then go, grab it!

Another very vivid effect is the postponing of Olympic Games. One may feel that it only affects the players, broadcasters and the tourism industry of the host country, but unfortunately this is not true. The essence of business is not having the right amount of money, rather it is to have it at the right time; we are all interdependent on each other’s profits owing to which a chain reaction may have already begun, that will shape our graphs as well.

At the end, the only fact that is clearly foreseeable is that in this tsunami of economic adversities, survival of the fittest will result. The good thing is that every difficulty comes with an opportunity and that’s what is being predicted and is quite visible in buying trends of some famed investors as they are expecting a big jump in potential fields once things start moving towards normalisation. And to a certain extent it is convincing as well; because it is undeniable that though markets may seem to have been sluggish in recent times but “after the night comes the day” and that is what everybody is waiting for. If you know the pulse of the market and have put in funds in the right place then things may turn out to be in your favour
soon.

After all it is always a trade-off between security and profit! And patience remains constant.

– Jugal Manek

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