The deadly novel coronavirus that has devastated the Chinese economy is having a ripple effect across the globe.
The coronavirus has infected more than 82,000 people and killed over 2,800 people, with more than 78,000 people infected in China alone where the flu-like disease originated. For the first time, new infections around the world in the past 24 hours surpassed those in mainland China.
Outside China, there are now 2,790 cases in 37 countries, and 44 deaths. 14 countries have had cases have not reported a case for more than a week, and 9 countries have not reported a case for more than two weeks: Belgium, Cambodia, Finland, India, Nepal, Philippines, the Russian Federation, Sri Lanka and Sweden. However, the sudden increase in cases in countries outside China, especially Italy, the Islamic Republic of Iran and the Republic of Korea, seemed “deeply concerning” for the director general of the World Health Organization (WHO).
The coronavirus’ rapid spread in Iran, Italy, South Korea and elsewhere left alarmed governments and people across the globe rushing on Thursday to implement emergency measures. Governments are closing borders with China and Iran, tightening travel restrictions from the countries most affected by the virus, cancelling public engagements, closing schools and universities and asking patients with the virus symptoms to call the ambulance to be tested at home, rather than go to hospitals. In China and Italy, several towns have been closed off for quarantine.
The coronavirus has already caused significant damage. China’s approach to containing the spread of the virus has kept cities under lockdown and factories shuttered, causing widespread disruption to businesses across the globe, which rely on China as a manufacturing powerhouse and a market for their goods.
Service industry players, such as airlines, holiday operators, luxury goods companies, hotels and other hospitality providers, are among the worst hit by the coronavirus outbreak around the world. The International Air Transport Association, which represents major airlines, warned this week that coronavirus could cost global carriers nearly $30 billion in lost revenue. Global demand would drop by 4.7%, the first overall decline since the financial crisis.
Manufacturers, including car makers, are also reporting production and supply chain disruptions. With factories shuttered and consumption stalled, multinational companies are being forced to shift production elsewhere. Maersk, the world’s largest container shipping company, said on Thursday that it was having a “very weak” start to the year, with factories in China, which make the goods it transports, running at around 50% to 60% of capacity.
Corporate earnings will definitely suffer in cities and regions where the population is put in quarantine.
Drinks giant Diageo’s market update says its annual profit could be hit by £200m because bars and restaurants across China, one of its biggest markets, have been closed. Big events, another money-spinner for Diageo, a British multinational alcoholic beverages company known for its presence in six continents, have been cancelled in Asian countries, especially South Korea, Japan and Thailand. Diageo joins companies, such as Apple and Danone, in warning about the impact of the deadly virus on its operations and sales across Asia.
South Korea, a country of 51 million people, has the second worst coronavirus outbreak after China, with the number of confirmed cases skyrocketing to over 1,700 from fewer than 50 just days earlier. As reported by the Financial Times, coronavirus disruption at Samsung could threaten South Korean economy as revenues at tech conglomerate amounted to 12.5% of the country’s GDP last year.
Samsung is the world’s biggest producer of smartphones and computer chips. Over the weekend the company paused production at its Gumi plant after a single worker tested positive for the virus, placing a further 1,500 workers from the plant under quarantine at home for two weeks. “If the virus spreads further here and gets out of control, then some chipmaking plants could suspend operations,” said Park Chong-hoon, head of research at Standard Chartered in Seoul, to the Financial Times.
Tokyo has halted big gatherings and sports events for two weeks, and is closing schools early for the spring break. Japan’s capital is the place for this year’s Olympics, and athletes are currently training for the major sports event with the opening ceremonies on July 24. But International Olympic Committee (IOC) member Dick Pound said it would not be impossible to reschedule the Tokyo Olympics for a year later due to the coronavirus outbreak. “Only if there is the worst possible outcome of this virus and it becomes a real pandemic or world health is at stake then we reluctantly have to say well that’s more important frankly than the Olympics,” Pound told Reuters.
As of 27 February, two further patients in the UK have tested positive for COVID-19, bringing the total number of cases to 15, England’s chief medical officer Chris Whitty said on Thursday. Several English schools were closed after their pupils who went on the trips to the coronavirus-struck towns in northern Italy came back home this weekend.
After 229 people tested positive for the virus and seven died, Italy put 11 towns in Lombardy and Veneto into lockdown. The closed-off towns in northern Italy are Codogno, Castiglione d’Adda, Casalpusterlengo, Fombio, Maleo, Somaglia, Bertonico, Terranova dei Passerini, Castelgerundo and San Fiorano in Lombardy and Vo’ Euganeo in Veneto. Precautionary measures were taken by Milan’s authorities and businesses: public spaces were cordoned off, schools, universities and museums were closed, key events like the Venice Carnival and Milan fashion week were curbed, even filming of the new Mission Impossible in Venice was suspended. Economic losses for local businesses are expected to be vast since Lombardy and Veneto – the two most affected regions – make up 30% of the Italian economy.
As coronavirus spread is speeding up around the world, businesses are taking precautionary measures to reduce their risk of exposure to the illness. Some companies send employees home after an employee reports a flu-like illness. US Centers for Disease Control (CDC) health officials have outlined measures that schools and business may need to take, including limiting the size of classrooms, and employing “internet-based tele-schooling”. “For adults, businesses can replace in-person meetings with video or telephone conferences and increase tele-working options,” said Dr Nancy Messonnier of the National Center for Immunisation and Respiratory Diseases.
The tele-working option is indeed a good idea for those companies where staff can work remotely. Chevron asked about 300 British employees to work temporarily from home after an employee in its Canary Wharf office in London reported a flu-like illness. Traders, exploration and refining unit staff were assigned to work remotely until test results can determine whether the worker has coronavirus.
Travellers returning home from the countries most affected by the coronavirus are also being urged to self-isolate, but in many cases it is difficult for parents of younger school children not to go to work, especially if they do not display any flu-like symptoms. So the problem with the virus spread is often exacerbated by inflexible work schedules and a lack of childcare provision.
At 11 hospitals and 100 GP surgeries across the UK, all patients with coughs, fevers or shortness of breath will now face ‘random’ tests for coronavirus, regardless of whether they have travelled to a place where the virus is spreading. Up to now, people were tested only if they displayed symptoms having recently returned from one of the countries where there has been an outbreak, including China, South Korea and northern Italy.
Coronaviruses are a large family of viruses which may cause illness in animals or humans. In humans, several coronaviruses are known to cause respiratory infections ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS). The most recently discovered coronavirus causes coronavirus disease COVID-19.
COVID-19 is the infectious disease caused by the most recently discovered coronavirus. This new virus and disease were unknown before the outbreak began in Wuhan, China, in December 2019.
The most common symptoms of COVID-19 are fever, tiredness, and dry cough. Some patients may have aches and pains, nasal congestion, runny nose, sore throat or diarrhea. These symptoms are usually mild and begin gradually. Some people become infected but don’t develop any symptoms and don’t feel unwell. Most people (about 80%) recover from the disease without needing special treatment. Around 1 out of every 6 people who gets COVID-19 becomes seriously ill and develops difficulty breathing. Older people, and those with underlying medical problems like high blood pressure, heart problems or diabetes, are more likely to develop serious illness. About 2% of people with the disease have died.
Source: WHO
There is no cure for the coronavirus that can lead to pneumonia, and a vaccine may take up to 18 months to develop. WHO recommends the following basic protective measures against the new coronavirus:
- Wash your hands frequently
- Maintain social distancing, allowing at least 1 metre distance between yourself and anyone who is coughing or sneezing
- Avoid touching eyes, nose and mouth
- Practice respiratory hygiene, covering your mouth and nose with your bent elbow or tissue when you cough or sneeze and disposing of the used tissue immediately
- If you have fever, cough and difficulty breathing, seek medical care early
If the coronavirus outbreak becomes a global pandemic, $1 trillion could be wiped off the world economy, with recessions in the United States and the eurozone, according to economists at Oxford Economics. A pandemic limited to Asia would knock some $400 billion off global GDP in 2020.
Additional reporting by Karolina Stawicka and Gina Isaac
Image: Jo Panuwat /Adobe Stock
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