Updated: May 5, 2020
It's clear the coronavirus has had an effect on global economies, but to what extent?
Coronavirus has had more of an effect than many would have guessed. Here are some of the biggest impacts:
1. Effect on the tourism industry
Coronavirus has had a noticeable effect on places like New York City, or Miami where tourism plays a key role in the city revenue- but what are the numbers? Last year, New York City received a record number of tourists- about 65 million people, totaling 44 billion dollars made from tourism. Coronavirus cases have soared past 175,000 in the Big Apple, while it remains on lockdown- no tourists are coming in, no money made from tourism; in fact, New York City has lost money, almost a whopping 10 bill dollars- but things are looking hopeful. Governor Andrew Cuomo has given a checklist to reopen the state after a recent decline in cases. In places like Hawaii, the Coronavirus was slim- after cases rose around late March, Governor David Ige officially declared that anyone who visits the Aloha State will be placed on a two week quarantine, making the thousands of tourists who visit Hawaii daily think twice. The tourism industry in Florida was hit hard during the Florida peak of Coronavirus, around April, especially in popular destinations like Miami Beach or Orlando. State Governor Ron DeSantis has already begun opening parts of the state up, while South Florida, home to the 3 most populated counties in the state (Miami-Dade, Broward, and Palm Beach), remains partially closed.
2. Impact on Small Businesses
Small businesses (specifically brick and mortar businesses) have been hit hard during the pandemic. Those in the service industries were hit hardest, most obviously due to the stay-at-home orders. Companies have taken precautionary measures; denying entry to those not wearing masks; the government has tried to lighten the load by loosening restrictions, trying to ensure small businesses stay open; the majority of restaurants still are not allowed have customers dine-in. While many businesses are financially struggling (30 million Americans filed as unemployed), a few obvious businesses, like e-commerce stores are in a less-worrisome spot financially. Retail stores experienced a 6 percent plunge in sales. The SBA is doing their best to provide economic relief, with loan advances up to $10,000 dollars, as well promising to pay all associated fees (principal, interest) to current holders of any 7(a), 504, or microloans. Many states have lifted restrictions, one of which is Florida- across the state many restaurants are reopening- South Florida remains the only area which is only partially reopened.
3. Global Markets
More recently, global markets took a dip, after increasing tensions with the USA and China over Coronavirus. Tensions between the USA and China over the handling and origin of the pandemic filled the air, and global markets have been paying the price; Major declines included one of China's major stock indexes, the Hang Seng Index, fell over 4 percent, and the German Dax fell over 3 and a half percent. After a rough start, the Dow Jones and S&P were able to recover, rising 26 and 12 points, respectively.