Global economic impact of coronavirus

Although no cases recorded of China’s new coronavirus in the sultanate, Omani diplomatic missions in some Asian countries have begun to warn citizens of the need to take caution and care when traveling to those countries. In the GCC, a few cases of the disease were recorded in some neighbouring countries, according to the official data.
Meanwhile, countries around the world have started cautioning their citizens on the need to take measures to ensure the prevention of this deadly epidemic.
The world has become today helpless and confused about this infectious virus that afflicts many people daily, with increasing fatality rates.
Today, this virus threatens the whole world without exception, killing dozens of people every day, mostly Chinese. It has become the talk of every town, as it affects not only people, but companies, businesses and even countries. At the economic level, this disease changed the positive outlook for the global economy which kicked off strong with the New Year 2020, especially emerging Asian economies.
The world was on the verge of a trade deal between the US and China in the wake of many trade wars sparked by President Trump since last year, and China was expected to move on with its economic recovery in 2020 and beyond. All this while oil prices were on a gradual rebound before the new epidemic appeared, turning the table on those expectations.
This disease has negative effects on industrial and commercial production and on the global financial markets, changes many expectations regarding the global economic growth of China and other countries, and affects the movement of the already declining international oil prices. The disease also has negative effects on world foreign trade and air traffic to and from Chinese airports and cities.
Moreover, the virus has caused major disruption in global tourism, whether by the Chinese or foreigners, and drove millions of people to buy protective masks and hazmat suits to keep the disease at bay.
Every economic sector today suffers from losses by this disease, but the tourism sector comes in the forefront due to cancellation of more flights to and from China and many other neighbouring countries to limit tourist influx. Chinese tourists are massive contributors to global tourism, spending over $250 billion annually on foreign and domestic tourism. Accordingly, the Chinese government has taken many measures, and cancelled all Chinese group tourist trips planned for the next few months worldwide.
Meanwhile, the world began taking many measures at airports to restrict the movement of tourism coming from China, whether through international airlines or railways from nearby countries.
This will result badly on the Chinese economy and other economies, which will inevitably prompt China to take monetary and financial measures to support its economic growth in the short term, while China’s demand for its oil supplies imported from the Gulf region and outside will decrease, which will contribute to a decline International oil prices, and will affect the financial budgets of oil countries.
With rising infections and death toll, Coronavirus has become one of the deadliest viruses that have afflicted the world to this day.
A pandemic is feared, and many people are avoiding travel, recreation or work in infected regions, threatening the disruption of many industrial, commercial and tourism activities worldwide.
However, putting all these risks and panic aside, the world is optimistic that modern medicine will discover an antidote to its resistance like other diseases that have afflicted humanity during the past centuries. Meanwhile, analysts expect that the global economic activity will witness a strong recovery again in case the disease is controlled and vaccines and drugs are created to eradicate this virus.
Chinese officials are highly confident that their government will beat this epidemic by taking the most sophisticated measures to prevent its spread.