Corona virus and a gloomy global economy
The effect of corona virus on the global economy has proved to be devastating. It has affected the socio-economic activities necessary to keep most countries afloat. Key sectors which contribute significantly to the social and economic activities in a lot of countries have been brought to a standstill. The virus is now on a global scale as all continents in the world have recorded cases of the virus. To stop the virus from spreading, affected countries have embarked on various measures such as, setting up isolation centers, training of medical staff and volunteers, sensitization of the public among other precautionary measures. Countries in Europe which are the worst hit have shut down their borders and enforced curfews to limit the spread of the virus.
The global economy is going through a health crisis and it seems a recession is unavoidable.
Recessions generally occur when there is a fall in effective demand. When people do not spend their money on consumer goods and investment goods then demand becomes ineffective. Currently, the global recession is as a result of a health crisis. The impact of the crisis has crippled the financial sector as well as other sectors/industries in the world. The basic explanation is that the regular consumer must prioritize his/her basic needs which includes food, clothing, shelter and other necessities which are important for life in the 21st century till the virus is contained or completely eliminated from the face of the earth.

Meanwhile this is a list of businesses/ industries that will visibly suffer the brunt of the crisis.
1. Aviation industry; there is a general fall in demand for services provided by airline companies. If people do not travel because for fear of contracting the virus there will be no revenue generated to sustain the industry. The airlines will be unable to fulfill their financial obligations such as payment of salaries, paying off debt etc. In Europe most of the airlines have grounded their air crafts as demanded by their governments to limit the spread of the virus. A lot of airline companies are already moving the motion for a bail out so that they can survive the corona tsunami.

2. The tourism industry; this is an industry that depends directly and indirectly on the aviation/travel industry. An inexhaustive list of businesses will be negatively affected by the crisis in the travel/aviation sector as a result of the corona virus. From hotels, restaurants, clubs, tour guides, taxi services, museums, amusement parks and many other small and big businesses which have been established to serve the needs of the tourist. All this, and many more will be negatively affected.

3. The oil industry; countries that are richly endowed with crude oil may find it hard to sell off their products as a result of the global fall in demand for crude oil. With the lockdown and border closure in Europe and other countries, the demand for petroleum products is at its lowest. People are not driving their cars, trucks, bikes etc. The demand for aviation fuel is quite low as most airlines are either shutdown or have limited their flight routes. In such a case supply exceeds demand leading to a fall in prices and fall in revenue for such countries.

4. The stock market; stocks in global markets are falling despite governments promising billions of dollars to cushion the effect of corona virus. Stock markets are guided by the rule of demand and supply therefore if there is a fall in demand for stocks, companies are unable to raise the funds required to sustain and expand their companies. Even when government intervenes to cushion the effect of falling interest rates on stocks it still won’t be enough to sustain the market unless it is backed up by investment from the private sector. The uncertainty and paranoia in the global economy has made the stock market volatile. There is no market confidence on the part of big and small time investors.

5. The sports and entertainment sector; due to the contagious nature of the corona virus crowd control is essential for limiting its spread Therefore global sports organizations have either postponed yearly tournaments towards the end of the year 2020 or have cancelled their tournaments till 2021 an example is the UEFA tournament which is by far the most popular in Europe, Africa and South America. Big and small businesses such as sport promoters, apparel branding firms, gambling agencies like betnaija,betway etc., sport equipment stores and others that depend on the thriving nature of such tournaments will most likely close down with no revenues coming in.

The corona virus is affecting everything and everyone; hopefully a vaccine will be formulated to treat the virus and contain it just like the Ebola virus. Till then, everyone must be prepared for the uncertainty that this virus presents.

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Corona virus and a gloomy global economy
The effect of corona virus on the global economy has proved to be devastating. It has affected the socio-economic activities necessary to keep most countries afloat. Key sectors which contribute significantly to the social and economic activities in a lot of countries have been brought to a standstill. The virus is now on a global scale as all continents in the world have recorded cases of the virus. To stop the virus from spreading, affected countries have embarked on various measures such as, setting up isolation centers, training of medical staff and volunteers, sensitization of the public among other precautionary measures. Countries in Europe which are the worst hit have shut down their borders and enforced curfews to limit the spread of the virus.
The global economy is going through a health crisis and it seems a recession is unavoidable.
Recessions generally occur when there is a fall in effective demand. When people do not spend their money on consumer goods and investment goods then demand becomes ineffective. Currently, the global recession is as a result of a health crisis. The impact of the crisis has crippled the financial sector as well as other sectors/industries in the world. The basic explanation is that the regular consumer must prioritize his/her basic needs which includes food, clothing, shelter and other necessities which are important for life in the 21st century till the virus is contained or completely eliminated from the face of the earth.

Meanwhile this is a list of businesses/ industries that will visibly suffer the brunt of the crisis.
1. Aviation industry; there is a general fall in demand for services provided by airline companies. If people do not travel because for fear of contracting the virus there will be no revenue generated to sustain the industry. The airlines will be unable to fulfill their financial obligations such as payment of salaries, paying off debt etc. In Europe most of the airlines have grounded their air crafts as demanded by their governments to limit the spread of the virus. A lot of airline companies are already moving the motion for a bail out so that they can survive the corona tsunami.

2. The tourism industry; this is an industry that depends directly and indirectly on the aviation/travel industry. An inexhaustive list of businesses will be negatively affected by the crisis in the travel/aviation sector as a result of the corona virus. From hotels, restaurants, clubs, tour guides, taxi services, museums, amusement parks and many other small and big businesses which have been established to serve the needs of the tourist. All this, and many more will be negatively affected.

3. The oil industry; countries that are richly endowed with crude oil may find it hard to sell off their products as a result of the global fall in demand for crude oil. With the lockdown and border closure in Europe and other countries, the demand for petroleum products is at its lowest. People are not driving their cars, trucks, bikes etc. The demand for aviation fuel is quite low as most airlines are either shutdown or have limited their flight routes. In such a case supply exceeds demand leading to a fall in prices and fall in revenue for such countries.

4. The stock market; stocks in global markets are falling despite governments promising billions of dollars to cushion the effect of corona virus. Stock markets are guided by the rule of demand and supply therefore if there is a fall in demand for stocks, companies are unable to raise the funds required to sustain and expand their companies. Even when government intervenes to cushion the effect of falling interest rates on stocks it still won’t be enough to sustain the market unless it is backed up by investment from the private sector. The uncertainty and paranoia in the global economy has made the stock market volatile. There is no market confidence on the part of big and small time investors.

5. The sports and entertainment sector; due to the contagious nature of the corona virus crowd control is essential for limiting its spread Therefore global sports organizations have either postponed yearly tournaments towards the end of the year 2020 or have cancelled their tournaments till 2021 an example is the UEFA tournament which is by far the most popular in Europe, Africa and South America. Big and small businesses such as sport promoters, apparel branding firms, gambling agencies like betnaija,betway etc., sport equipment stores and others that depend on the thriving nature of such tournaments will most likely close down with no revenues coming in.

The corona virus is affecting everything and everyone; hopefully a vaccine will be formulated to treat the virus and contain it just like the Ebola virus. Till then, everyone must be prepared for the uncertainty that this virus presents.

Honestly, there is a big problem, if this continues, the global economy will be dwindling

Nice write up... Really educative