FICCI: Economic Impact of Coronavirus on Indian Economy26.03.2020
Coronavirus has now spread across various parts of the world and so has the fear and concerns around its damaging impact on human lives and economic health of countries. The new virus which appeared in the Wuhan city of Hubei province of China in early January, has already affected 171,112 people across 145 countries and territories and has caused 6526 deaths in a period of only two months. In the epicentre China, more than 80,000 people have been diagnosed with the disease COVID-19 caused by coronavirus and 3,189 people have succumbed to the disease.
Outside China, the disease has spread to other Asian countries including India, Europe, Middle East and USA. The reported number of infected cases from coronavirus in India has gone up to 114. With each passing day, new cases are getting reported in other parts of the world. Keeping in view the rapid pace at which COVID-19 is spreading and its severity, the World Health Organization (WHO) declared it a global pandemic on March 11, 2020.
Besides loss of human lives, the outbreak of COVID-19 is affecting the world order in several ways. Both demand and supply side elements are getting affected by the outbreak of COVID-19. With fear and panic gripping people at large, lowering their overall confidence level along with government advisories directing people to avoid crowded places and restricting travel, consumption of goods and services especially discretionary items is taking a hit. Tourism and Entertainment are the sectors that are facing the maximum brunt of the present crisis. Greater uncertainty about the future course and repercussion of COVID-19 is also increasing volatility in the financial markets worldwide, leading to huge market crashes and wealth erosion, which in turn is impacting consumption levels adversely. Stock Markets globally has reportedly lost about US$ 5 trillion of wealth during the first week of March alone, as measured by the MSCI all-country index.
Further information and the full impact paper from the Federation of Indian Chambers of Commerce & Industry can be found in the Downloads section.