So far, 185 countries have been affected by the Coronavirus. The virus was first detected in China last year, and since then has quickly reached other countries across the world, causing many deaths and the need for countries to be put on lockdown, making travel very difficult. Businesses have also been greatly affected by the virus, and has left many with huge financial problems, with many struggling to stay afloat.
Increase in Citizenship by Investment
One of the most notable changes to business is the rise in citizenship by investment purchases. Wealthy investors have begun to obtain multiple citizenships in worldwide countries so that they are able to travel freely, despite the rest of the world in lockdown. The use of second citizenship has seen a shift from being used as a lifestyle and business change to being used as means to access healthcare and safety. People are looking for a safe place with good healthcare that the whole family are able to travel to if the need arises, something that only citizenship can guarantee. Even if a country has closed boarders to everyone else, it still admits nationals who are returning ‘home’. Some of the most popular countries that have seen a rise in citizen by investment over the past few months include Australia, Austria, Switzerland, Cyprus, Malta, the Caribbean, and Portugal.
Many global shares have taken a huge hit since the pandemic began at the start of the year. Investors are beginning to worry that because of the virus, economic growth will be destroyed, despite all that the government are trying to do to prevent this. One of the main things that the banks have done in response to the pandemic is to slash interest rates. The idea behind this was to encourage spending in order to boost the economy, as borrowing money has become cheaper.
A growth in unemployed
It is hardly surprising that since the pandemic begun, more and more people have been laid of work as businesses struggle. For example, in the US, people filing for unemployment hit a record high. The UK is another country that has been hit hard by unemployment, at the end of March when UK lockdown began, almost a million people filed for unemployment in just a 2 week period.
Again, it is unsurprising that the travel industry has been hit hard as boarders to the majority of countries remain closed. Businesses trips and holidays have been cancelled and flights have been cut, with uncertainty as to when travel will return to normal. Overall more than 100 countries have had travel restrictions implemented in response to the coronavirus, causing airline companies and holiday companies to struggle financially.
For the first time in years, people in the UK have been able to fill their car up for under £1 a litre. This again is due to the coronavirus pandemic. With lack of people traveling to see family, go to work or go on day trips, the demand for oil has all but dried up. Currently, the world has more crude oil than it can use, despite the fact that countries have agreed to cut the production.
Looking to technology
Where possible, people have been working from home rather than going into the office. Not only does this stop people coming into contact with others while at work, but also reduces the need for public transport. Due to this, there has been a huge rise in the need for electrical communications, such as Zoom and Skype. Therefore, shares in these companies have also shot up.
It is not just online communication companies that have seen a rise. The need for online entertainment has also risen, therefore streaming platforms like Netflix have had more users than ever.
Factories in China
Coronavirus first appeared in China, earlier on in the year than when it effected the majority of the rest of the world. In the first three months of the year, sales, investment and industrial production all say a huge drop compared to the same time last year. Seeing as the country is the world’s largest exporter of goods and makes up a third of manufacturing globally, this has had a huge effects on the rest of the world.
Even the supply chains of huge companies have been affected, such as the likes of Nissan and JCB. However, in response to the pandemic, there has also been a fall in the demand of these goods. The interest that is there has now moved online, for example, car dealerships such as Tesla are now selling cars online as the show rooms remain shut.