Last Updated: September 28, 2021
Table of Contents
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 examined the latest trends and the effect the recession will have on business and the stock market.
- Our team researched which businesses will thrive because of the state of emergency.
Let’s warm up with some of the latest statistics:
Coronavirus Statistics and Facts (Editor’s Choice):
- 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 see how things looked like as of May 2020 in the US:
And what are people searching for these days…
Google says that coronavirus is the BIGGEST search topic nowadays.
Here’s what things looked like in March 2020:
(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:
(Image: Google Trends)
Let’s get into some more details now:
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:
(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.
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:
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.
(Image: BBC News)
Coronavirus Market Impact around the world
- 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%.
- 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%.
- 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.
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.
(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
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%.
(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.
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.
(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.
- 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.
- 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.
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.
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!
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.
(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
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.
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.
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.
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.
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.
- Medical professionals
- Law enforcement
- Internet professionals
- IT Staff
At times like now, no one really needs Employee Happiness Managers.
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.
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 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.
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
- Worldometer – a list of the latest Coronavirus statistics worldwide.
- Johns Hopkins – a world map and the latest stats showing the spread of the virus.
- Health Map – an interactive world map with the latest information.
- University of Washington – world map, charts, and statistics.
- University of Virginia – an interactive map and charts with the latest info.
- South China Morning Post – a map with the latest Coronavirus stats.
- Bing – a map with the current statistics.
- Centers for Disease Control and Prevention – Coronavirus news updates and reported cases in the USA.
- The Guardian – a detailed interactive map specifically for the US.
- European Centre for Disease Prevention and Control – Worldwide Coronavirus Situation Update.
Now that we have covered everything, let’s wrap things up, guys.
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.