The world economy has received huge hits as the coronavirus spread around the world. It originally started spreading in the Wuhan region in China several months ago, and soon it was able to affect almost every country around the globe.
Every field has received damage from the virus, but the world economy suffers the most. Some say that the situation might get even worse than it was in 2008, but what will happen still is unknown. The situation is getting worse every day, as the number of people infected is changing every minute.
For now, there are more than 350,000 confirmed cases of coronavirus in the world, most of them being in China, Italy, Iran, the US, and Europe in general. As the situation in China is getting better, Europe becomes a new epicenter of the virus. The World Health Organization already declared coronavirus as a pandemic.
The threat that this can have on the world’s economy can be unmatchable. Many businesses closed down, people are left without jobs, even places like McDonald’s are getting closed in many countries. Only pharmacies and grocery stores are remaining to be open. All the bars, restaurants, night clubs have been closed in many countries. In some places, people are not even allowed to leave their homes.
As the situation gets worse, there are fewer hopes for the economy to survive without huge damage. Since the 2008 crisis, stocks have never been this low, and the number is dropping down even further. Even fields like crypto, that many thought would not get affected, are suffering in this climate a lot.
There are many businesses announcing that they will have to go out of the business for some time because they do not have anything left to do. Some companies even went as far as declaring bankruptcy.
Fields being affected by the coronavirus
Many fields were affected by the novel coronavirus. Some of the biggest hits were received by the companies that work in the tourism sector. But, it was like a chain. Because of the virus, the Airlines got a huge hit as most of the flights got canceled to prevent the virus from spreading further. Because people were not able to travel anymore, small tourism businesses stayed without any visitors, which resulted in a very bad situation.
In addition, even fields like crypto received a huge hit. It’s not easy to say why, as many people thought that it could survive the virus. In reality, its price dropped dramatically.
Many events got canceled because of the virus, including music festivals, theater releases, gambling competitions, conferences, and many other gatherings. Just like in 2008, the gambling industry received quite a damage this year as well. As many tournaments are getting canceled around the world, the field is losing a lot of clients. Cities like Las Vegas are facing huge challenges since gambling and tourism is what makes their economy strong.
All of the casinos in Las Vegas are closed as of now, and nobody knows when they will be open again. However, in this situation, online gambling is managing to stand strong. As most of the people do not have the ability to leave their homes, the demand for online gambling has been skyrocketing.
The gambling industry, among many others, is facing a huge challenge. The future is simply unknown, and nobody can really tell what the world will look like. But as a result of people being self-quarantined, online casino gambling platforms are becoming more popular.
Many people are trying to spend their time playing online casino games, and the field is becoming more and more successful. As many different tournaments got canceled, some of the leaders of the companies had the initiative to hold the competitions online, with the help of online gambling platforms.
What happened in 2008?
Named as the worst economic disaster since the 1929's Great Depression, the 2008 financial crisis occurred despite federal reserve and treasury department efforts to prevent it. The crisis led to housing prices dropping a lot, and even two years after the crisis ended, the unemployment still stayed above 9 percent.
There were many causes of the 2008 crisis but it is largely believed that it was mainly caused by deregulation in the financial industry. First, the prices of houses went down, and many thought that it would go up by itself, but it did not. Then, everything else followed. The world got into a very bad situation. Many think that the same thing will happen now, 12 years later, as the coronavirus attacks the economy as strong as no other virus was able to.
The world has survived many pandemics, but none of them were this easily transmitted as coronavirus. The spread of the virus is helped by globalization and easier traveling. Also, the fact that the virus affects people differently, is another problem. There were even some people who did not have any kind of symptoms whatsoever, this helped the virus to spread further.
Can 2008 happen again?
Many professionals have been saying for years that 2008 can re-happen again. While many did not believe, coronavirus worked as a catalyst in this situation and 2020 has a chance of being another 2008. There are many fields that are affected by the virus and stopping it seems to be impossible. The thing is that it seems like the world did not even try to prepare for the next crisis.
It seems like the world economy froze and there is nothing that can be done until the virus is gone. While the world hopes for the spread of the virus to end soon, the virus is getting nowhere close to being done. It is becoming stronger every day, more and more preventive measures are taken, which damages the economy even harder.
However, the thing that could work is that the priority should be the management of the pandemic. The longer the pandemic goes, the harder it will be for the global economy to get back on track.
The first case of the ‘unknown virus’, now known as the COVID-19, was first reported from the Wuhan region of China in late December 2019. Since then, the virus slowly started to spread around the world, and now there have been cases of it in almost every country.
Although China managed to fight well against the virus, COVID-19 managed to spread further in Europea and in the US. The number of people infected by the virus is rising, and so does the death toll. Currently, there are more than 350,000 people infected by the virus, and more than 15,000 killed.