Financial Impact of the CORONAVIRUS Pandemic [UPDATE May 2020]

How bad is the coronavirus affecting the economy? 

Is it too soon to measure the financial impact of the Coronavirus in May 2020?

We figured that you’ll need some extra information and sources. Here they come:

  • We compiled a detailed Coronavirus timeline (to put things into perspective). 
  • We selected the top Coronavirus statistics since the beginning of the pandemic. 
  • Also, we examined the latest trends and the effect the so-called Trump recession will have on business and the stock market.  
  • Our team researched which businesses will thrive because of the state of emergency.
  • On top of everything, we selected the best websites where you can update yourself with the latest Coronavirus information every day (check at the bottom of the page). 

Let’s warm up with some of the latest statistics: 

Coronavirus Statistics and Facts (Editor’s Choice): 

  • The global fatality rate of Coronavirus is 3.7%.
  • COVID-19 could cost the global economy close to $3 trillion
  • Amazon is hiring 100K new employees in order to handle the deliveries in the US. 
  • There’s a 98.1% decline of US air travel in Asia Pacific. 
  • On March 17, the price of Bitcoin dropped down to $4,623. 
  • The production of The Lord of the Rings is postponed for the moment. 

We here at SpendMeNot decided to dig for the latest data!

Let’s get started: 

Coronavirus (COVID-19) Timeline 

Coronavirus November 2019

  • November 17: The first confirmed case has been traced back to this date.
  • The first case is presumed to be an animal-to-human transmission.

Coronavirus December 2019

  • December 1:The symptom onset date of the first patient identified.
  • December 30: Dr. Li Wenliang, the first Chinese doctor who tried to warn people about the virus in December was accused of spreading rumors. 

Coronavirus January 2020

  • January 1: The Huanan Seafood Wholesale Market, where the virus originated, was shut down on.
  • January 9:The first confirmed death from Covid-19 was reported on in Wuhan.
  • January 13: The first case outside of China was reported in Thailand.
  • January 15: Japan confirmed its first imported case.
  • January 20: The first imported case in the Republic of Korea. 
  • January 20: There were 282 reported cases in these four countries.
  • January 23: China and WHO confirmed that a human-to-human transmission was possible.
  • January 23: Wuhan was quarantined. 
  • January 30: WHO declared a global health emergency.
  • January 31: The USA suspended entry to foreign nationals who had traveled to China in the past 14 days. 

Coronavirus February 2020

  • February 1: A guest on the Diamond Princess cruise ship tested positive. 
  • February 2: Death case was reported in the Philippines, first one outside China.
  • February 7: Dr. Li Wenliang died from the Coronavirus. 
  • February 9: The death toll in China reached 908, surpassing the worldwide SARS death toll of 774.
  • February 14: The first case in Egypt and Africa was a Chinese national. 
  • February 14: The first reported death in France and Europe was a Chinese tourist.
  • February 19: The first two cases, and subsequently deaths, were reported in Iran.
  • February 20: The first death in South Korea was reported.
  • February 20: 70 cases in South Korea, related to a “Patient No. 31” – a woman who refused to get tested, part of a religious sect. 
  • February 20: There were 75, 748 confirmed cases globally. 
  • February 22: The first deaths were reported in Italy. The Lombardy region was on lockdown.
  • February 26: The first case in Brazil, Norway, North Macedonia, Greece, Pakistan, Romania, and Georgia were reported. 
  • February 26: The new cases outside China outnumber those in China. 
  • February 27: The first cases in Northern Ireland, Estonia, Denmark and the Netherlands were reported.
  • February 28: An Italian citizen was the first reported case in Nigeria.
  • February 29: The first death in the USA was recorded.

Coronavirus March 2020

  • March 2: The first case was confirmed in Saudi Arabia.
  • March 3, there were 90, 870 confirmed cases worldwide. 
  • March 7: Fatemeh Rahbar, a member of the Iranian parliament, died due to complications from the virus.
  • March 9: The first deaths in Germany were reported.
  • March 11: The World Health Organization declared Covid-19 a pandemic.
  • March 11: There were confirmed cases in 114 countries. 
  • March 11: Trump declared a national emergency.
  • March 16: Somalia recorded the first Coronavirus case.
  • March 20: more than 266,000 recorded cases, more than 11,000 deaths, and around 90,000 recoveries. 
  • March 23: more than 350,000 recorded cases, more than 15,000 deaths, and around 100,000 recoveries.

Coronavirus April 2020

  • April 1: more than 880,000 recorded cases, more than 44,000 deaths, and around 185,000 recoveries.
  • April 6: over 1,200,000 recorded cases, 69,000 death cases, and 265,000 recovered.
  • April 17: over 2,000,000 recorded cases, 135,000 death cases, and 523,000 recovered.

Coronavirus May 2020

  • May 18: over 4,815,000 recorded cases, 316,000 death cases, and 1,863,000 recovered.

As of May 18, the top 7 countries where the Coronavirus has spread the most were:

Financial Impact of the Coronavirus - Coronavirus Cases

(Image: Worldometor)

Let’s see how things looked like as of May 2020 in the US:

Financial Impact of the Coronavirus - Coronavirus graph

And what are people searching for these days…

… coronavirus.

Google says that coronavirus is the BIGGEST search topic nowadays.

How big?

Here’s what things looked like in March 2020:

A screenshot of Google Trends

(Image: Google Trends)

And again, in May 2020 things have started too cool off. Fewer people are searching for “coronavirus” lately and life is slowly going back to normal:

A screenshot of Google Trends

(Image: Google Trends)

On April 3, one of the people who invests the most in the eradication of diseases all over the world, Bill Gates, gave a TED Talk about the COVID-19.

Let’s see what he has to say:

Let’s get into some more details now:

Coronavirus Stats and Facts 

1. Wuhan is the COVID-19 ground zero

(Source: World Health Organisation)

The so-called COVID-19 is a strain of the Coronavirus family. Some strains of it only cause illness in animals. Others, such as COVID-19, SARS, and MERS can be transmitted from animals to humans.

The outbreak began in the Huanan Seafood Wholesale Market in Wuhan, China. Scientists believe that the virus has a zoonotic origin.

While it hasn’t been confirmed from which animal the virus originated, the virus is related to bat and pangolin viruses. 

2. COVID-19 Patient Zero hasn’t been confirmed yet. 

(Source: South China Morning Post)

The first human source of the outbreak hasn’t been confirmed yet. Though some leaked documents indicate that the first cases can be traced back to November 2019.

Scientists are trying to track down the first known case. According to government documents seen by the Post, it may have been a 55-year-old man from the Hubei Province. 

3. Dr. Li Wenliang is one of the first COVID-19 whistleblowers

(Source: BBC)

Dr. Li Wenliang was an ophthalmologist working at the Wuhan Central Hospital. He noticed that the virus was similar to SARS. Dr. Wenliang sent out a warning to his colleagues in a group chat on December 30. 

At the beginning of January, he was summoned by the police and warned to stop spreading ‘false information that disturbs the social order’.

Dr. Li Wenliang got infected when treating a patient and died on February 7, 2020. 

4. China notified the WHO about pneumonia cases of unknown origin on December 31, 2019.

(Source: World Health Organisation)

Some of the first patients that developed symptoms were linked to the Huanan Seafood market.

Due to this, on January 1, 2020, the market was closed for disinfection. 

According to the WHO, the first patients had the following symptoms:

  • Fever
  • Difficulty breathing 
  • Invasive lesions in their lungs

At that time, no human-to-human transmissions of the virus were reported, nor had there been any health care workers that were infected.

In their news report on January 5, the WHO stated that they don’t advise on trade or travel restrictions on China. 

5. The most common Coronavirus symptoms are fever and dry cough.

(Source: Our World in Data)

According to data based on the laboratory-confirmed cases in China, almost 90% of the people infected develop a fever. 

Other common symptoms are dry cough, shortness of breath and difficulty breathing.

Financial Impact of the Coronavirus - A chart of the symptoms of coronavirus disease

(Image Source: Our World in Data)

6. The global fatality rate of Coronavirus is 3.7%.

(Source: Our World in Data)

This info is based on more than 150,000 confirmed cases and close to 6,000 deaths.

The fatality rates are as follows:

  • 3.7% globally
  • 3.9% China
  • 3.5% rest of the world

7. The fatality rate is highest for people aged 80+.

(Source: Our World in Data)

Focusing on the case fatality rate by age group lets us know which population is most at risk.

A lot of infectious diseases hit children the hardest. Examples include malaria and the Spanish flu.

However, this doesn’t seem to be the case with COVID-19. Children and young people have milder symptoms in general. The older population is most vulnerable. 

Here is a breakdown of the Coronavirus fatality rates by age group in China:

  • 80+ years – 14.8%
  • 70-79 years – 8%
  • 60-69 years – 3.6%
  • 50-59 years – 1.3%
  • 40-49 years – 0.4%
  • 30-39 years – 0.2%
  • 20-29 years – 0.2%
  • 10-19 years – 0.2%
  • 0-9 years – 0.2%

8. 10.5% of people with a cardiovascular disease died as a result of COVID-19.

(Source: Our World in Data)

Besides affecting the elderly population, COVID-19 is also fatal for people with preexisting health conditions.

Coronavirus fatality rate by underlying health conditions in China:

  • Cardiovascular disease – 10.5%
  • Diabetes – 7.3%
  • Chronic respiratory disease – 6.3%
  • Hypertension – 6%
  • Cancer – 5.6%
  • No health condition – 0.9%

9. COVID – 19 is more fatal than the seasonal flu. 

(Source: Our World in Data)

At first, a lot of coronavirus statistics appeared downplaying the fatality of the virus. 

However, compared to the seasonal flu, COVID-19 has a higher fatality rate. This means that a larger number of the people infected have died. 

Here is a comparison of the fatality rates:

  • Seasonal flu (US) fatality rate – 0.1%
  • SARS-CoV fatality rate – 10%
  • MERS-CoV fatality rate – 34%
  • Ebola fatality rate – 50%

10. WHO declared that Coronavirus is officially a pandemic on March 11.

(Source: World Health Organisation)

On March 11, there had been more than 118,000 cases in 114 countries. The World Health Organisation declared that COVID-19 can officially be classified as a pandemic. 

Now:

What is a pandemic? 

At first, diseases are classified as an epidemic – meaning they only affect a certain region. 

Once the disease spreads globally, as was the case with the Coronavirus outbreak, they are classified as pandemics. 

11. Patient 31 in South Korea caused a whole cluster of cases.

(Source: BBC)

A woman in South Korea, which is now infamously known as ‘Patient 31’ is responsible for a whole cluster of cases in Daegu. 

The woman was showing symptoms of the virus. However, she refused to get tested. While she was infected, she attended multiple gatherings with other members of her religious sect.

As of February 22, more than 1,000 members of the church reported symptoms. 

The leader of the cult will be prosecuted for violating the Infectious Disease and Control Act. 

12. COVID-19 could cost the global economy close to $3 trillion. 

(Source: Bloomberg)

The Coronavirus impact on the global economy cannot be overlooked.

According to Bloomberg, GDP growth has slowed worldwide. COVID-19 could end up costing the global economy $2.7 trillion.

People keep fearing a recession in 2020.

13. The Trump administration is pushing for a $1 trillion stimulus package.

(Source: The Washington Post)

In a bid to help lessen the economic impact of COVID-19, the Trump administration is pushing for a Coronavirus stimulus package

Many Americans may face unemployment. The White House plans to send direct payments to ensure that cash will be circulating in the economy. 

14. UEFA matches have been postponed due to COVID-19. 

(Source: UEFA)

In an attempt to contain and mitigate the outbreak, numerous government restrictions have been imposed. 

Schools, universities, cinemas, and theatres have been shut down worldwide. Sports matches have been either played without an audience or have been postponed. 

The UEFA is no exception – on March 15th they announced that all of their matches will be postponed.

15. Elon Musk told employees thеy are more likely to die in a car crash. 

(Source: The Verge)

More and more companies are encouraging their employees to stay home and work from there.

SpaceX CEO Elon Musk had something to say about this.

In a memo sent to his employees, he stated that they are more likely to die in a car crash than from COVID- 19. A car driven by a human perhaps, and not a Tesla driverless car.

He did encourage employees to self-quarantine if they have visited some of the high-risk countries though. 

Coronavirus and Societal Changes

Coronavirus and Remote Working

One of the recommendations, in order to prevent the spreading of the virus, is avoiding large groups of people. Maintaining a distance from people is generally advised. 

“Working from home” is officially the biggest trend in March 2020: 

An image of Google trends - search for "work from home".

(Image Google Trends)

Coronavirus social-distancing forces workers to move their offices in their homes. A lot of companies are taking precautions and advising their employees to work remotely. 

 Here is how some companies are handling this:

  • Google recommended all North American employees to work from home.
  • Amazon asked employees from Seattle to work from home.
  • Microsoft asked employees in San Francisco and Seattle to work from home.
  • Apple closed its stores.

Due to the Coronavirus work from home is on the rise. So much so, that Microsoft Teams – a teamwork online platform – crashed in Europe. Millions of Europeans on lockdown were working remotely and they had connectivity issues when trying to use the app. 

Coronavirus and Home Deliveries

Coronavirus self-quarantine has also spiked a different trend. Grocery delivery apps have been breaking their daily downloads. 

The Walmart home delivery app has seen a surge of 160% in downloads. Instacart and Shipt are also breaking their daily download records.

Consumers have been also turning to food delivery services such as UberEats and GrubHub. 

Some of these companies have introduced a no-contact delivery. Customers have the option to add a note or even a pic of where they want their food to be delivered. 

And high-end diners aren’t left ordering from McDonald’s – luxurious NYC restaurants are delivering sushi and caviar in a box.

Coronavirus and the Amazon Home Delivery BOOM!

The demand for home delivery caused by the Coronavirus has been so high, that Amazon announced that they will hire 100,000 employees in the USA.

The company also raised the hourly pay by $2 in the USA, £2 in the UK and €2 in certain EU countries.

Amazon also encouraged people to furloughed from the restaurant, travel and hospitality industry to apply. 

Coronavirus and the Financial Markets

The massive spread of Coronavirus has contributed to over 200,000 infected people around the world and more than 7,000 deaths.

However: 

It has also started taking a great toll on the financial market. 

Also, China is the largest exporter of manufactured products in the world. 

Which countries will be the most affected by China’s supply disruption: 

A map of how coronavirus can affect the global supply market

(Image: Bloomberg

The fear of infection is emerging and the global economy suffers. As many industries are shutting down or going on hiatus, the global market is the one that is suffering.

Namely, ending on February 28th losses of trillions of US dollars were established in just a single week. As things stand now, the Coronavirus financial impact is only comparable with the financial crisis that occurred in 2008.

There have been ways that were done to improve the situation when central banks included stimulus measures. But even though the market rebounded for a brief period and erased certain losses, new losses started to occur the next day forcing the market back into a slump.

It is safe to say that the market is experiencing instability which will continue until the crisis is averted.

How were the leading global stock markets hit during the February Coronavirus stock market bottom?

The coronavirus outbreak started in December 2019

And it did not show any initial financial problems. This was due to the fact that nobody back then knew how long it would last. The main hope back then was China’s ability to stop the contagion from breaking out away from their borders.

A chart on the impact of the coronavirus on stock market.

(Image: BBC News)

Coronavirus Market Impact around the world

Asia-Pacific Stock

  • Japan’s Nikkei 225 and Topix fell by more than 5%.
  • Hong Kong’s Hang Seng was down by 4.2%.
  • Mainland China’s stock reduced by 3%.
  • Australia’s S&P/ASX 200 plunged by 7.3%.

European Stock

  • Pan-European Stoxx 600 ended up going down by 7%.  
  • Italy’s FTSE MIB closed 11% lower.
  • Germany’s DAX experienced a slump of 8%.
  • France’s CAC 40 was reduced by 8.4%.

North American Market

  • Dow Jones Industrial sank 5.7%.
  • 10-year Treasury note was at its all-time low of 0.318%.
  • 30-year Treasury Bond tumbled down by 0.71%.

With COVID-19 breaking out all over the world, it was only a matter of time when a market crash might occur. (The Dow Jones meltdown was an eye-opener.)

A Coronavirus stock market conspiracy theory was on many people’s lips at the time. Finally, on February the 28th, many global stock markets had their worst weeks ever since the 2008 financial crisis.

Moving on: 

Coronavirus & Cryptocurrency

For a while now, cryptocurrencies alike have been seen as a safe haven for a crisis. However, it seems that all cryptocurrencies, especially Bitcoin, have proved to be infectious – proven after the market crash on March the 12th, due to the recession 2020 created by the Coronavirus crisis.

The value of Bitcoin plummeted down by 40%, causing chaos all around the world. Many have seen Bitcoin as a long-term investment as they sought to create an alternative financial system. It was seen as an asset of the future, since its value, like gold, does not depend on the cash flow of institutions.

Additionally, what caused the crisis was the major selloff of investors. Professional traders have been desperate to raise cash. Bitcoin was just another financial asset that got tramped in the way as investors heeded for an exit in light of the US recession.

Latest Bitcoin Price Chart Timeline

  • February 25 – $9,997
  • March 2 – $8,776
  • March 8 – $9,159
  • March 12 – $7,998
  • March 14 – $4,820
  • March 17 – $4,623

Other cryptocurrencies also suffered immense losses as well. Bitcoin is not the only one that diminished in value. The ones affected the most include Ethereum, Litecoin, and Ripple (XRP). 

Coronavirus: A Historic Market Fall

There have been several market crashes creating market chaos in the past. The 2020 Coronavirus pandemic is quickly becoming a reason for a big one. The Coronavirus crash was able to wipe out less than $5 trillion in just weeks’ time.

A chart of all the historic market falls.

(Image: The Conversation/Financial Times)

List of Historic Stock Market Crashes:

  • 1928 – Great Depression
  • 1940 – Hitler invades France
  • 1987 – Black Monday
  • 2001 – Dot-com bubble burst
  • 2008 – Financial Crisis
  • 2020 – Coronavirus outbreak

Now: 

Let’s take a look at previous epidemic outbreaks that happened in history. You’ll see that the market was able to bounce back pretty quickly in those cases. 

Based on the analysis that was conducted it shows that most markets went back to original numbers after a year when the crisis started. In two cases, the market went back a full 20%. 

A table of other illnesses and financial recovery period

(Image: The Conversation/Financial Times)

Coronavirus Economic Impact

The Coronavirus outbreak is going to leave a deep impact on the economy. From music festivals to sporting events, and not to mention tourism, certain economies are going to suffer a devastating blow.

Unfortunately, the struggles are not as imminent now as you would expect them to be. As long as the industries are on a hiatus people less equipped to handle it will feel the impact.

How Will Coronavirus Affect Small Businesses? 

As far as small businesses go, they are going to start feeling the effects sooner than the larger companies. Of course, this all depends on the longevity of the outbreak and the Coronavirus impact on the economy

Currently, 74% of businesses say they are not affected by the situation. On the other hand, 23% claim that the situation has started to affect their dealings negatively. Only 3% of small businesses have reported a positive impact during this period. 

The first problem that most of them have is of course lack of business but the second one is in regard to the supply chain

However: 

The longer the state of emergency lasts… 

… more bad news for smaller businesses.

Businesses that borrow money or pay rent will be impacted the most

If they are already experiencing less income, chances are that the trend will continue. The Coronavirus economic cost will be a huge problem for many small businesses. Eventually, it will impeach their ability to gain and borrow money. After not being able to bankroll their activities or pay rent or credit we might expect a certain number of businesses to file for bankruptcy. 

Businesses might look to cut their losses by slashing prices or laying off workers. However, there is still no way of telling how long that solution might work. 

How Will Coronavirus Affect Public Events?

The Socio-economic impact of the Coronavirus pandemia is going to affect all the major tournaments and events happening this season. The majority of football leagues around the world, as well as the NBA, are closed and more are to follow. Perhaps the biggest news is moving the 2020 UEFA Euro Championship to June 2021

Discussions are still being led about the 2020 Tokyo Summer Olympics, but for now, the date still stands. We will see for how long. 

Coronavirus economic effects will have major implications on all happenings around the world. March is usually the month when most college sports tournaments are coming to a close. Let alone all the spring festival events that are supposed to rack up a lot of cash for the organizers. Unfortunately, the majority of them are going to suffer big losses.

Here is the potential income that these events stand to lose:

  • March Madness (Cleveland) – $8 million
  • Frozen Four (Detroit) – $10 million
  • Final Four (Atlanta) – $100+ million
  • SXSW (Austin) – $355 million

There are no contingency plans yet in the effect of postponing or alleviating the losses that are bound to happen.

How is the Coronavirus Affecting Air Travel? 

The Coronavirus impact on travel has already been devastating enough. Air travel is noticeably down since almost all countries have banned international travel. Airlines themselves have decided to cut flights long before tourists started canceling their tickets. The biggest decline is seen in Asia, where most of the potential visitors decided to cancel their visits.

A chart about the US flight bookings globally

(Image: BBC News

More than 100 countries are already imposing travel restrictions. Chances are that both the travel and the tourism industries are going to suffer a massive step back.

Coronavirus financial predictions for airlines say that they are going to go through probably the biggest losses. Flight cancellations to Asia, particularly to China, started happening by the end of last year when news about the virus broke. They steadily continued at the start of this year and have skyrocketed as the contagion spread to other parts of the world. 

Decline of US Travels (6th of  January – 8th of March):

  • Asia-Pacific: – 98.1%
  • Europe: – 31.9%
  • Africa/Middle East: – 22.6%
  • Americas: – 14.5%

How is the Coronavirus Affecting TOURISM? 

Coronavirus effects on tourism are devastating

Hotel cancellations are subsequently the next part of the tourism industry that the Coronavirus has impacted. Logically, most cancelations have been seen in Asia, due to the outbreak starting in China. But the cancelation rate due to the Coronavirus pandemic has also hit the US hard as well.

Hotel Cancelation Rates:

  • North America: 40%
  • Europe: 52%
  • Asia Pacific: 90%

There is still no telling how deep of an impact the situation will have. But long-lasting effects are most likely going to be felt in the months to come. 

People Are Buying Less!

Stores and restaurants will suffer. 

(We’re not talking about online stores here. Those guys will make it rain!)

Not only does Coronavirus impact the supply chain, but it also prompts people to visit places where they can spend less. As people are staying home there is no need to go out shopping or socializing. This is already becoming apparent in a lot of countries worldwide.

Eating out has been a go-to time consumer for a lot of people. Now the restaurant industry is facing a harsh period. Many of the establishments are closing doors for the time being.

Restaurant Booking Cancelations:

  • UK: -20%
  • Germany: -38%
  • Canada: -41%
  • US: -42%
  • Ireland: -52%

Before the Coronavirus disease 2020, things in the US were at an all-time high. The national debt statistics were at an all-time low. The economy was doing well and the unemployment rate was at a 50-year low. 

After the COVID-19 crisis, we are bound to see some changes. The most obvious is that the economy is slowing down.

As far as Coronavirus long term effects go, there is no telling what will happen. Generally, it will all depend on how much time it’ll take to keep the Coronavirus contained.

Coronavirus Predictions

We are in the midst of the Coronavirus outbreak.

What will happen in the next couple of months?

What will happen by the end of the year?

Responding to the virus has been our major concern. Seriously, check out the blog of Bill Gates. They post the latest information on research and results there.

There are many assumptions in terms of the future.

Some have even predicted the coming of the coronavirus

Now others predict a Doomsday scenario. 

(Some are a bit more uplifting. Some.)

How much will Coronaviurs cost the global economy?

We don’t know.

Nor do we know what the final outcome will be. However, there are predictions that may shed some light on the future. 

Here we go: 

Coronavirus: ECONOMIC Predictions

There is the possibility that the US is going to enter a recession. It depends on the further development of the Coronavirus. For the time being, the effects of the virus are causing the US economy to slow down by a rate of 0.4% in the first quarter.

If the Coronavirus cases keep emerging, we can expect to see a further slowdown for the second quarter of 6.5% and perhaps 1.9% for the third quarter.

Assuming that the pandemic ends in the summer, economic recovery is predicted and we are going to see a growth rate of 4.4% for the fourth quarter.

Coronavirus: Infection and Death Predictions

The Center for Disease Control and Prevention tried to estimate the rate of Coronavirus transmission and the possible impact on the population. The figures certainly do not look good but in order to calculate the possible outcome, worst-case scenario figures were taken.

CDC Possible Coronavirus Predictions for the US:

  • 160 million to 214 million people infected.
  • 2.4 million to 21 million people hospitalized.
  • 200,000 to 1.7 million deaths.

Current rates say that there are around 250,000 confirmed cases worldwide of people with Coronavirus symptoms. While we have over 10,000 deaths caused by COVID-19 already established. The numbers are jumping higher and higher as the virus continues to spread across the world. The stats have actually doubled in a span of only 11 days.

Some happy news – there have already been 88,000 cases of patients that have recovered from the virus!

The worst-case scenario comes from an Australian research facility. They predict 15 million dead worldwide and a GDP impact of $2.4 trillion loss.

How Will the Coronavirus End? 

As things currently stand, there are two possible scenarios:

Scenario 1 – Delayed Recovery

In this scenario, predictions say that new cases will peak in the Americas and Europe during mid-April. At the same time, Asian countries would have already peaked. Africa and Oceania are limited. 

The growth of cases will be slowed down due to Coronavirus precautions like effective social distancing and quarantines. Testing capacities will catch up to needs. This will further result in a more accurate picture of the epidemic.

Financial Impact of the Coronavirus - A map of the impact of coronavirus

(Image: McKinsey & Company)

The virus will remain a seasonal thing which means that further spread is limited. By mid-May, everything will seem more optimistic. The Southern Hemisphere winter will see more cases but at this point, countries would have developed defense and ways of mitigating the disease. The autumn of 2020 will also see a resurgence of the infection, but better preparedness will ensure continued economic activities.

Scenario 2 – Prolonged Contraction

The second scenario predicts that the peak of Coronavirus consequences will be seen in the Americas and Europe in May. This might happen due to delayed testing and a weak response from the public to prevention measures. In this case, the virus is not going to be a seasonal thing. This will lead to a long tail of cases that are going to be prolonged throughout the end of the year.

In this case, Africa, Oceania, and certain Asian countries will experience more cases. Countries with a younger population will have fewer deaths. This will further imply that even countries that have done well in controlling the disease (like China has), public health measures are still going to be kept.

TV/Hollywood Cancellations Because of the Coronavirus

According to the Coronavirus latest news, the entertainment industry is going to take a massive blow. Many movies and shows that have started production or are in the middle of it needed to stop immediately. Furthermore, all the latest theater and TV releases are going to be postponed due to the breakout.

Actors will have a few extra days of rest, but the crews working on the movies and shows will be affected as they will more than likely not receive pay for the time lost. 

(And of course, cinemas will be closed and all of our favorite movies that we have expected for a long time will be on hold.)

The Coronavirus financial implications are going to have a negative effect on studios as they will lose a lot of money. The box office will show just how much big blockbuster movies are going to lose.

Here are some of the future projects from the entertainment industry that are being affected:

Coronavirus: Postponed MOVIE Productions 

  • Mission Impossible 7 – Filming in Venice stopped.
  • No Time to Die – The premiere of the new James Bond movie is pushed back from April to November.
  • Fantastic Beasts 3 – Production postponed for an unknown period of time.
  • Fast & Furious 9 – The release was moved a whole year, from May 2020 to April 2021.
  • A Quiet Place Part II – The movie was supposed to premiere by the end of May but the release has been moved indefinitely.
  • Mulan – Originally was supposed to be released on 27 March, but the date will be pushed to later in the year.
  • The New Mutants – The was due to premiere in theaters on April 3, but has been pushed to a later date which is yet to be announced.
  • Disney Productions– Disney officially stopped production on a number of their future projects that are currently filming. They include The Little Mermaid, Nightmare Alley, Shrunk, Peter Pan & Wendy, Shang-Chi and the Legend of the Ten Rings, and the Home Alone reboot.

Coronavirus impact on markets like the movie industry is expected to cause up to $200 billion loss.

Coronavirus: Postponed TV Series Productions 

  • The Lord of the Rings – The long-awaited Amazon series is temporarily ceasing filming. No news on when it will continue.
  • Witcher – After the success of the first season, a turnaround was announced quickly. However, production in the UK is paused currently.
  • The Handmaid’s Tale – Production of season 4 has been completely stopped.
  • Grey’s Anatomy – The show will be on hiatus of production for at least two weeks.
  • The Falcon and the Winter Soldier – Filming in Prague on a halt.
  • Survivor – The current Winners at War season is not being affected, but the upcoming season scheduled for release on March 24 is paused.
  • Grace and Frankie – The series is in the midst of filming their final season which was stopped and no news about a return has been given.
  • Netflix Productions– The popular streaming service announced that production on all their projects has stopped.
  • Late Night Shows– The Tonight Show with Jimmy Fallon and Tonight Show with Seth Meyers suspended production through March 30. 
  • Warner Bros Productions – Progress on shows like Riverdale and the Flash has been stopped. Additionally, some 70+ shows and pilots have been suspended for now.

However, shows like The Late Show with Stephen Colbert, Last Week Tonight with John Oliver, Full Frontal with Samantha Bee and The Daily Show with Trevor Noah will continue without a live audience.

When it comes to TV, it is a lot harder to determine the losses. A lot of companies and platforms don’t release their income numbers. Nevertheless, all of them stand to lose a lot, unless production on the current projects does not continue.

Which Businesses Will Thrive Because of the Coronavirus?

The same Coronavirus impact on China seen months ago is now hitting the rest of the world. But it’s not all doom and gloom. Some businesses are actually expected to thrive. They include:

  • Locally owned grocery stores 
  • 5G providers 
  • Digital media 
  • Healthcare

With more and more people being prompted to stay inside, many businesses are taking a nosedive. Some are already preparing for a recession. But the listed few have nothing to worry about. 

Here’s why:

Locally Owned Grocery Stores

As the shortage of goods increases during this period, locally-owned grocery stores are getting all the merits of the situation. Recession stocks are still not being used, but smaller grocery stores have made an impact as they are helping people in need.

One will usually find a larger crowd in front of big supermarkets during this period. But you will always find fresh food items to stock up on in locally-owned grocery stores. 

5G Providers

As people are staying home there is a growing need for communicating. Luckily we have the internet to keep us both entertained and connected. And so, there is a much larger need for 5G networks. 

Not just due to an entertainment factor but 5G network usage is rising due to business needs. As more people are working from home currently many businesses need to hold video conferences in isolation. This is where 5G providers come to save the day, as the demand gradually increases.

Digital Media

Have you thought about investing during a recession?

If yes, digital media is a good choice.

While people are staying home, they need to entertain themselves. Many are turning to digital media.

More and more people are turning towards video games. This is a trend already seen in China and currently happening in Europe. More people are streaming and watching other people play video games as well.

Video streaming platforms like Netflix are also booming with business. Even though most of them needed to stop producing new content, there is a lot of old ones that people can binge-watch while they are staying home.

Social media is yet another example of recession-proof businesses. People are looking for comfort in social media platforms and now more than ever people are using them to pass the time but also get informed. 

Healthcare

With a crisis like this, the healthcare industry is the one that will obviously boom. We are not talking only hand-sanitizers. There is a growing need for other sorts of equipment and medicine that people are in dire need of.

Nevertheless, this is still an industry people are trying to take advantage of. Sound consumption and no panic buying will keep things calm.

So are we headed for a recession

It’s looking more and more likely every day. 

Until then people have to make the most of it and find ways to alleviate the situation. 

Businesses are indeed taking advantage of a dire situation. But most of them are trying to help people in their darkest hours.

Additionally, there are certain jobs that are almost never affected by the recession.

Recession-Proof Jobs

  • Medical professionals 
  • Law enforcement 
  • Internet professionals 
  • IT Staff

At times like now, no one really needs Employee Happiness Managers. 

Medical Professional

Even during periods where we don’t have a rampaging virus, medical professionals are going to be in need. Professionals with skills are there to provide help.

Nurses usually earn about $50,000 a year. Physicians get $175,000.

Law Enforcement

Upon hearing recession news, many people will start going off their ways just to survive. It is a known fact that illegal activities and riots are going to go up during this period. Thus people working in law enforcement are going to be needed to calm the situation down.

A police officer in NYC earns $70,000 but the salary differs depending on the area.

Internet Professionals

Internet experts are a sought for bunch no matter the period. People skilled in developing sites, optimizing research or web development will be highly sought after. It is definitely one of the better recession-proof jobs. It even pays way more than other jobs! Furthermore, you can do it from home, so the Coronavirus won’t stop you.

Depending on the position, internet experts can earn between $50,000 to $60,000 a year.

IT Staff

When it comes to information technology, it is definitely a branch that will always be in demand. Some would say that this is the best investment during a recession. Unless there is a zombie apocalypse on foot, you will always find a good job in IT if you are skilled enough.

It also mostly depends on the position one occupies, but a salary in Information Technology can go up as $75,000 a year.

Best Sites to Check for the Latest Coronavirus Updates 

Now that we have covered everything, let’s wrap things up, guys.

In Conclusion

A global recession is upon us. 

Measures have been taken and there is definitely a light at the end of the tunnel!

We collected the latest information on the financial impact of the Coronavirus in 2020

Stay healthy and stay home – for now!

See you around on SpendMeNot

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