COVID-19 Update: Economy impacts
The novel coronavirus (COVID-19) a pathogen that causes respiratory illness. Most cases of COVID-19 have been reported in China, particularly in Hubei province, where the outbreak was first detected in December 2019. However, the virus has rapidly spread to more than 60 other countries, and the number of new cases reported outside China has exceeded those in the country since 26 February. Countries such as Iran, Italy and South Korea have become major centres of infection, and people travelling from these locations have spread the virus to other countries.
Ongoing economic impact
The COVID-19 outbreak has already had a negative impact on the global economy. Businesses in different sectors and countries are facing lost revenue and disrupted supply chains due to the factory closures and city lockdowns in China, as well as the travel restrictions now being applied by numerous governments. Although some manufacturing operations in China are resuming, their operations may only normalise in May due to the scale of disruption associated with the quarantine measures imposed to combat the spread of the virus.
Even if authorities can contain the spread of the virus, it is highly likely that the COVID-19 outbreak will continue to negatively impact the global economy in the short-to-medium term. The knock-on effects of the slowdown in the Chinese economy and disruption to supply chains will have consequences for organisations around the world. Companies in the manufacturing or services sectors that cannot operate with greatly reduced staffing may be particularly impacted. If the outbreak spreads further, then the impact on the global economy will be magnified.
Organisations should proactively monitor the COVID-19 outbreak, communicating with staff to provide advice to prevent infection. It is also important to review and implement plans for dealing with infectious disease outbreaks.
PGI’s Risk Portal can help your organisation stay abreast of the rapidly changing COVID-19 situation, including:
- Daily tracking and incident mapping of new country occurrences, major spread/contagion events, high profile cases, business disruption.
- In-depth Insights that analyse the impact on global business, supply chains and travel.
- The ‘medical’ category within the Risk Portal allows users to extract the data and use this to map and geo-locate key risks, overlaying against key markets/territories specific to your organisation.
- Customisable daily email briefs can provide key information based on the geographies/regions that matter to you.