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The Future of the Economy: How the Coronavirus Will Shape the Future
The future of the economy: just like global wars and economic depression, the Coronavirus outbreak could create fundamental changes in politics, work, and economy.
Only a few days since its outbreak, the virus comes as a transformative force that could affect the world in the near future and beyond.
Looking back, history tells us of the Black Death killed a whole third of Europe’s population during the 14th century, leading to indescribable labor scarcity.
Just recently, the 2003 SARS outbreak made way for China’s nascent e-commerce sector.
Now, depending on the extend of coronavirus spread, we need to develop consciousness of the possible changes as well as coping mechanisms.
If the outbreak endures long, then the more impactful it’s going to have on our lives.
Let’s see how the coronavirus will shape the future.
The Future of the Economy: Remote Work Will Explode
As many governments develop measures to curb this rapidly evolving challenge, there has been an explosion of videoconferencing and remote work as a coping mechanism.
This has particularly doubled in North America and Asia.
Companies require that their employees work from home in order to slow the COVID -19 spread.
This also allows staff to quarantine themselves.
No Public And Social Gatherings At All
There is minimal face to face meetings compared to usual office meetings and conferences.
In fact, many governments have stopped all public gatherings including churches, political rallies, weddings, and other events which could possibly haste coronavirus spread.
Decline In The Glory Of Tourism And Travel Industry
Having already hit supply chains, the outbreak is causing a repricing on global tourism and travel industry such as hotels, airlines, and travel operators. These have seen a decline in bookings and revenue.
A Big Blow On Manufacturing Companies Relying On China For Materials
Those companies which rely on China for supplies have received a painful blow.
Resultantly, the situation prompted a re-examination of the world’s central reliance on only one source for manufacturing materials.
Given the continued spread of the virus, there is definitely going to be a decoupling of manufacturing out of China.
How the Coronavirus Will Shape the Future: Nasty Politics
There is going to be nastier politics. As the countries react to the epidemic, some countries would take undue advantage of the situation.
Some far-right leaders from France, Italy and Spain have already made calls for tightening of borders. If this persists, populism could possibly break out amidst Coronavirus breakout.
In the US, the COVID-19 has already become politicized. Today, 70% of Republicans hold a strong belief that the country is adequately prepared for the outbreak unlike 35% of the democrats.
As China is believed to have mismanaged the situation, the country has recently tried to spin its apparent success in containing the COVID-19 virus to save its autocratic system.
This argument will forcefully gain momentum once the US joins the discussion.
Intensive Scientific Research On The Epidemic
Undeniably, the COVID-19 outbreak has overwhelmed governments so far. However, scientists are making the most strides toward a potential cure for the virus.
Resultantly, there is going to be a rapid analysis of the genetic makeup of the virus.
On the same note, Scientists at Stanford University have developed a COVID-19 diagnostic test that delivers results in 12 hours, which is way faster than existing models.
Essentially, the year is only three months old, no one can doubt that this year is marking the most significant and remarkable events of the decade and beyond shaping the future of the economy.