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Coronavirus outbreak induces dip of $1 trillion in the global economy

Coronavirus outbreak induces dip of $1 trillion in the global economy
Coronavirus outbreak induces dip of $1 trillion in the global economy
The global epidemic has not only claimed the human lives but is set to bring down the global economy in coming days. After recording nearly more than two thousand fatalities in just a month, the deadly disease, coronavirus, has now massively affected the global economy. Various companies operating across technology, apparel, retail, and other sectors have unanimously stated that the mass epidemic and public lockdown in China has caused them major loss in the company sales, making the global economy to plunge more than USD 1 trillion, if it continues further. Coronavirus, officially known as COVID-19, was sourced at the Wuhan state in China and paved its way almost globally, claiming lives of many. Moreover, it has been claimed to spread continually and emerge out as a global pandemic. As per China’s National Health Commission report, more than over 75,000 infection cases have been registered, while the death toll has soared over 2000 across the country. According to reliable sources, the outbreak already possesses a significant chilling effect on the growth of businesses in China, trimming the nation’s annual expansion forecast to 5.4 per cent down from 6 per cent prior to the epidemic. Moreover, industry experts reveal that if the outbreak expands beyond China, but confined to Asia, the affect could shear off the global GDP by 0.5 per cent, nearly USD 400 billion. But if, it proliferates beyond the region, the global growth would fall to approximately USD 1.1 trillion, in terms of revenue. Considering the adverse effects on the business, a number of big brands have issued warnings pertaining to the impact of virus, with the tech-giant, Apple revealing that it is near to impossible for the company to meet its financial guidance for the current quarter owing to a decrease in the production of iPhones as a result of the epidemic. Moreover, industry biggies such as Puma and Adidas, reportedly warned that coronavirus was cutting down their operations due to the temporary closure in states of China with fewer Chinese tourists opting to shop from other countries. Source credits: https://www.cbsnews.com/news/coronavirus-economic-hit-could-exceed-1-trillion-dollars/

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Bhushan Tambe

A qualified computer graduate, Bhushan Tambe always nurtured a passion for words. Post his education, he decided to transform his penchant of penning down poetry and stories into a full-time career. Presently, Bhushan writes numerous articles for cuereport.com and a few other websites, on subjects spanning business, finance, and the like.