Economic Effects of Coronavirus Around the World

Economic Effects of Coronavirus Around the World

IMF chief Kristina Georgieva says 2020 could see ‘a recession at least as bad as during the global financial crisis or worse.’ Some of the sectors worst hit by the pandemic are the automotive, aviation and tourism industries.

Car manufacturers including Volkswagen Group, PSA Group (Peugeot, Citroen, DS, Vauxhall and Opel), Fiat Chrysler and Daimler have suspended manufacturing across Europe, Renault has stopped the manufacturing and sale its vehicles in Spain. Volvo Cars were one of the last automakers to shut its plant in Belgium due to coronavirus pandemic. Conditions in Europe affect the supply chains for production in Russia. Several representative offices of automotive brands announced the adjustment of their production programs. General Motors, Ford and Fiat Chrysler have halted production at their plants in the United States. BMW has also suspended manufacturing in Europe and South Africa until April 19.

International Air Transport Association forecasted that global passenger revenues will shrink by US$252 billion or 44 percent due to the pandemic. The figure was based on ‘severe travel restrictions’ lasting for up to three months, followed by a forecasted gradual economic recovery later. The Association also considered that the full-year passenger demand will decline 38 percent compared to 2019.

Asia-Pacific region will bear the brunt of the revenue loss reaching US$88 billion. Europe and North America expect a similar impact.