What impact is Covid-19 having on global economies?
The impact of the new coronavirus (Covid-19) pandemic continues to play out. The extent to which the virus will spread, both between and within countries remains unclear, and the duration and impact are highly uncertain. Sadly, the human impact continues to grow, and the virus has now claimed the lives of over 248,641 people, as at 3 May 2020.
Increasing numbers of countries now face the prospect of lock downs and ongoing quarantine measures. The effect is likely to result in a severe slowdown in global economic activity, with the risk of stress to a number of sectors.
From an investment angle, the impact on economic activity and financial markets has been significant. The drastic reduction in oil prices has stimulated a sense of insecurity and panic across the globe and here in Nigeria, it has precipitated lower dollar revenue, shortage of dollar due to reliance on oil revenue and a direct threat to investment in the oil sector if the situation persists for a longer period of time. Investors are holding their money; the dollar is now scarce; naira has been devalued bringing about widespread pessimism and fear of another economic recession shortly after exiting one.
Under-developed countries (Like Nigeria) are worse hit from a stronger dollar FOREX. While governments in most are cutting taxes and reducing interest rates, the story is not the same elsewhere.
Economic Impact of COVID-19 on Top Global Logistics Industry
- Cargoes are stuck in several port terminals across the world and are subjected to various levels of deterioration.
- Notable decrease of volumes at most seaport terminals – especially relating to activities requiring a significant number of human clusters.
- The overall situation regarding the operational status of airports, truckers and customs clearance in China are gradually returning to normal and the backlog has pilled-up to the sky.
- Lead time and applicable rates have become unpredictable
- Resort to alternative routing is a viable alternative in the event of stringent cargo restrictions on some global routes, if possible.
All education materials can be found via www.covid19.ncdc.gov.ng