How has Coronavirius impacted the Economy?

The coronavirus outbreak has infected tens of thousands of people across the world, with UK cases increasing to over 300 in recent days. The rapid spread of the virus has left businesses around the world counting the cost.

Here are just a few ways coronavirus has impacted the different economies and industries around the world so far.

Economy Growth 

Economy growth is measured by looking at the percentage change in gross domestic product (GDP), or the value of goods and services produced, over three months or a year.

The world's economy could grow at its slowest rate since 2009 this year due to the coronavirus outbreak, according to the Organisation for Economic Cooperation and Development (OECD).

With China taking a big hit from the initial outbreak and much of the country in lockdown, the virus could affect up to 42%of China's economy, according to Standard Chartered.

Stock Markets and Shares Take a Hit

Fears over coronavirus have promoted a record plunge in the US stock market, seeing the worst performance for major stock markets since the 2008 financial crisis. World stock markets are expected to fall further next week after the first surveys of China’s economic health since the coronavirus outbreak showed factory output has decreased significantly and the country’s service sectors have contracted.

It has been warned that some big shifts in stock markets, where shares in companies are bought and sold, can affect investments in some types of pension or individual savings accounts (ISAs). British pension funds have lost 5-6% of their value in the last five days as fears over the impact of coronavirus sent stock markets tumbling around the world.

The fall in the financial markets came as countries, such as Italy, stepped up efforts to contain the virus by banning travel, closing schools and postponing major sporting events and business conferences.

Travel Restrictions Could put Businesses at a Loss 

Many countries have introduced travel restrictions to try to contain the virus's spread, the UK government advises against all travel to the Hubei province in China, where the virus originated and has issued travel advice for Italy, which was the first European country to report a major surge in cases.

The travel industry has been massively impacted, with airlines cutting flights and tourists cancelling business trips and holidays. Globally, the airline industry is set to lose $29bn, according to the International Air Transportation Association (IATA). 

UK airline Flybe has gone into administration, putting 2,000 jobs at risk. The carrier said the impact of the coronavirus outbreak on demand for air travel was partly to blame for its collapse. Flybe’s website is advising customers to "not travel to the airport" unless they have arranged an alternative flight. 

If you are a customer of Flybe and were due to travel, please find more details and your right explained here. 

Hand Sanitiser Sales Soar 

Hand sanitiser sales have increased by 255% across Britain's supermarkets as coronavirus fears change shopping habits, according to by market research firm Kantar, U.K. The surge of sales has lead to pharmacy chains now having to restrict the number of product sales per person as fears over the coronavirus has boosted demand. Cleaning products and liquid soap are also in high demand across all suppliers too. 

A spokesperson for Boots, the UK’s largest pharmacy chain, said it had seen an increase in the sale of hand sanitisers, but it still had stock available in its warehouses for online and in-store sale.

They also confirmed that there is currently a limit of two hand sanitisers per customer to ensure as many people as possible have access to the products and that there are no plans to ‘profit from this’