COVID 19 Major Impacts 2022 – World-Wide Major Impacts of Corona-Virus – The COVID-19 has become one of the biggest concern to the worldwide financial markets and economy. The virus coronavirus, which first originated in the Wuhan City of China from last December of 2019, has infected more than 110,000 people in approx one hundred countries and territories globally.

Let’s study the COVID 19 Major Impacts on various sectors:

Manufacturing Sector – COVID 19 Major Impacts

The Transportation, Construction, and Chemical manufacturing sectors worldwide are worse affected by the COVID-19 Coronavirus Pandemic. However, India’s top imports gems, crude oil, and jewelry like Gold, Diamond, Silver which collectively account for 46% (forty-six percent) of total imports are relatively insulated from the public health crisis globally.

Out of India’s total imports of United States Dollar 50% billion in FY 19, 26% of the basket, which comprises iron and steel and inorganic chemicals, is likely to affect modestly. The COVID-19 has originated unexpected challenges and difficulties in their government, industries, and enterprises around the world.

Service Sector

The service sectors like as aviation, tourism, hospitality, and e-commerce will face the first brunt of the severe travel, assembly and activity curbs imposed by the government across the world, followed by a wider impact on other sectors such as economic activity stalls.

Moody’s has downgraded India’s growth to 5.3% in 2020 due to downside risks of COVID-19. “By first quarter in next fiscal, we can definitely see a shaving off of at least half a percent of GDP, which could go up to 1% depending through the economy on how much it permeates.

As per Sabnavis views, the banks will also have to worry about a rise in non-performing assets (NPA’s). if the shutdown on travel and mall continues for a month or more, a zero-revenue situation will definitely impact the ability to service loans he said.

Oil Sector:

Coronavirus affects the oil market in two ways. First, the restrictions imposed on travel due to containment efforts limit the use of jet fuel, and supply chains slow and industrial activity almost closed as companies send workers home – oil-based products and meaningless oil are being produced and used. Second, the stock market response to regarding Coronavirus’s effects on the worldwide economy builds a projection of global oil demand over the long term.

Stock-Market Sector – COVID 19 Major Impacts

London’s FTSE 100 share index fell more than three percent and there were similar declines in European markets. The stock market has responded to the Coronavirus pandemic with worrying volatility, as traders have panic-sold out of fear.

Insurance Sector:

There is a free test for COVID-19 in India. But the expenses of hospitalization for confirmed patients must be borne by the themselves. So, the insurers’ company is seeing a sharp development in inquiries on health insurance policies. But the pricing impact for new policies will be negligible as actuarial models generally factor as per historical data.

However, the health business and travel insurers could be targeted if the COVID -19 virus was to significantly impact in India.

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