"Corona Economy" by Gabby S.
While we all know the threat that the coronavirus poses to our health and safety, the economic eventualities of the situation are still undeveloped. This virus is seen as a disastrous epidemic by the media. However, those that look at the facts know that this disease is mostly fatal only to the elderly, which has accounted for 80% of the current death toll. The death toll is less than 500 of the almost 25,000 infected worldwide. Although this disease is not an immediate threat to our lives, it can still affect us all in many ways. One of these ways is through the economy.
It seems that China’s economy may be suffering at the hands of this virus. Currently, China’s economy takes up one-sixth of the global economy. Travel and trade are two of China’s most profitable enterprises, and in the past week, two cruise ships have been quarantined off the coast of Hong Kong and Japan. This quarantine includes 5,300 passengers, including 428 Americans. Royal Carribean has also canceled 8 cruises that were planned throughout early May that were scheduled to begin in China. Disney has also shut down two theme parks, which is a substantial source of income for both China and Disney. Both Japan and Thailand also have reason for concern. With all the restrictions on travel, Japan and Thailand are expected to lose a lot of tourist revenue. Chinese tourists currently make up 40% of tourism spending in Japan, and 4% of Thailand’s GDP.
Many American based corporations may be taking large hits to their commercial income from storefronts and factories that were forced to close due to the quarantine. Toyota, Volkswagon, and General Motors are just three car factories that had to halt production. It’s not just China, though. South Korean car company Hyundai, had to shut down production due to the stall in part shipments from China. Nike, Adidas, H&M, Gap, Hugo Boss, and many others have closed most stores or cut hours. Some airlines have even asked staff to go on unpaid leave due to the lack of airline travelers.
With this epidemic pre-crisis taking centerstage in nearly all aspects of China’s economy, both the global economy and China’s central economy are taking hits. Bejing extended the Chinese New Year holiday and pushed back the opening of the stock market to Monday, where it crashed. On Tuesday the stock market leveled out again, presumably because bargain hunters took advantage of the low prices of crops, among other products. Soybeans, one of the most frequently used crops worldwide, was one of these crops. China is one of the biggest importers of soybeans, so most were worried about the hit exporting countries would have to take. This worry seemed to be unfounded, however, when prices for this important crop actually rose.
What other factors could influence the economy? Should we cut off trade with China or should we just put lots of restrictions on the products coming from them and to them? Will the Coronavirus hurt or help our economies in the long run?
It seems that China’s economy may be suffering at the hands of this virus. Currently, China’s economy takes up one-sixth of the global economy. Travel and trade are two of China’s most profitable enterprises, and in the past week, two cruise ships have been quarantined off the coast of Hong Kong and Japan. This quarantine includes 5,300 passengers, including 428 Americans. Royal Carribean has also canceled 8 cruises that were planned throughout early May that were scheduled to begin in China. Disney has also shut down two theme parks, which is a substantial source of income for both China and Disney. Both Japan and Thailand also have reason for concern. With all the restrictions on travel, Japan and Thailand are expected to lose a lot of tourist revenue. Chinese tourists currently make up 40% of tourism spending in Japan, and 4% of Thailand’s GDP.
Many American based corporations may be taking large hits to their commercial income from storefronts and factories that were forced to close due to the quarantine. Toyota, Volkswagon, and General Motors are just three car factories that had to halt production. It’s not just China, though. South Korean car company Hyundai, had to shut down production due to the stall in part shipments from China. Nike, Adidas, H&M, Gap, Hugo Boss, and many others have closed most stores or cut hours. Some airlines have even asked staff to go on unpaid leave due to the lack of airline travelers.
With this epidemic pre-crisis taking centerstage in nearly all aspects of China’s economy, both the global economy and China’s central economy are taking hits. Bejing extended the Chinese New Year holiday and pushed back the opening of the stock market to Monday, where it crashed. On Tuesday the stock market leveled out again, presumably because bargain hunters took advantage of the low prices of crops, among other products. Soybeans, one of the most frequently used crops worldwide, was one of these crops. China is one of the biggest importers of soybeans, so most were worried about the hit exporting countries would have to take. This worry seemed to be unfounded, however, when prices for this important crop actually rose.
What other factors could influence the economy? Should we cut off trade with China or should we just put lots of restrictions on the products coming from them and to them? Will the Coronavirus hurt or help our economies in the long run?
Works Cited
Berlinger, Joshua, and Sandi Sidhu. “Second Cruise Ship Being Investigated after Revelations Coronavirus Patient Was on Board.” CNN, Cable News Network, 5 Feb. 2020, www.cnn.com/2020/02/05/asia/coronavirus-cruise-quarantines-intl-hnk/index.html.
Dreibus, Tony. “3 Big Things Today, February 5, 2020.” Successful Farming, Successful Farming, 5 Feb. 2020, www.agriculture.com/news/3-big-things-today-february-5-2020.
Deutsche Welle. “How Will the Coronavirus Affect the World Economy?: DW: 04.02.2020.” DW.COM, www.dw.com/en/coronavirus-outbreak-china-and-the-world-economy-worse-than-sars/a-52253833.
Davies, Rob. “How Coronavirus Is Affecting the Global Economy.” The Guardian, Guardian News and Media, 5 Feb. 2020, www.theguardian.com/world/2020/feb/05/coronavirus-global-economy.
It's crazy how much this is affecting the economy. I know that the corona virus has had a big effect on Tesla as well, as they just opened a factory in China. I've seen dozens of headlines about how the virus is affecting the stock market. Almost everything we use has something from China. We can't stop trade forever. I think that is why China is actively trying to combat it. They rely on trade, which won't happen until the virus is gone. At least not as much.
ReplyDeleteThe Corona virus is steadily rising in its death toll and is certainly something to be concerned with. The stock crash and the stores releasing workers on an unpaid leave prove that. Fewer people are also choosing to stay inside and are urged to not use public transport, lowering the economy more. Another reason China is at great risk is, because many buyers are choosing to get their supplies from places elsewhere. They fear that they might catch the life threatening virus themselves. China is feeling the impact the most not only economically, but with the countless hospitalized due to the Corona virus. We should being what we can to help China, considering all of the resources we buy from them. The Corona virus isn't only hurting them, but the United States as well.
ReplyDeleteThe corona virus is bound to have many unforeseen consequences and their economy is definitely hurting. With a majority of our products coming from China it is definitely a concern for us as well. I think we should still trade with China but we have to be careful with what it is. If we momentarily stop trade it would hurt both countries and may cause problems in the future. I think we could cut down the amount of things we are trading for precaution, but do not completely stop it. The corona virus is a dangerous thing just as the flu and other diseases, but it is having much more economic impact that things like the flu.
ReplyDeleteI don't understand how the economy as a whole could be benefited from the coronavirus. Companies that sell products to contain viruses and slow down spreading will benefit from it, but other than that and doomsday companies, I don't see this helping businesses. It is fortunate that the United States has not led it spread to the country because then our economy and the world economy would be hurt even more. I believe the coronavirus is either overestimated, or china is hiding what is truly happening. I am interested to see how history will remember the coronavirus and compare it to the flu.
ReplyDeleteThere are many other factors could influence the economy, but it would be a negative influence, and one would be people not wanting to travel due to the scare of contracting the virus. I feel like we should not cut off trade with China, I dont believe the packages will carry the virus. The Coronavirus is both helping and hurting our economy currently, it making gas prices cheaper since we are having more oil and other things not being traded, and it is hurting by not trading as much as previously.
ReplyDeleteI wasn't really taking the corona virus seriously, but after seeing that theses governments and companies are shutting down places that really help their economy and profit, I'm kinda having second thoughts about it. I don't think that we should totally cut off our trade with China. There is far too much that both countries gain from this trade. More restrictions will probably be the best thing. To worry about this disease that has a very low death rate to the point of cutting off trade would not be the way to go in my opinion.
ReplyDeleteIts not the fact that the corona-virus isn't extremely dangerous now its what it can become that is scaring everybody. I am not surprised that the economy dropped from the virus but I am surprised that it has dropped this much. It seems like the virus is worse than said in China considering that factories are being shut completely down. Hopefully soon they can better control this disease and bring back the world and United States economy.
ReplyDeleteThe way the media portrays this virus sounds so much more serious and deadly than statistics actually show. The economy being affected by this makes a lot of sense. I didn't expect so many trades being halted. I think restrictions are necessary however to contain the spread of the virus. I hope that they can find an end to this and the economy can recover.
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