Economic damage spreads as Europe confronts coronavirus

The coronavirus has recently spread to Europe and caused Italy to rise its Warning Level to 3. This means that it is highly advised not to travel to/from this country. Italy is spiraling towards Level 4 which would mean that the country is essentially a ‘no fly zone’ and no one should be travelling in or out of the country. Capital Economics, a London research consultancy projected that the “economic effects of a severe pandemic could be as bad as those of the global financial crisis” (Lynch & Whalen, 2020). The disease has caused global trade with countries such as China, Japan, and Italy almost impossible. The Coronavirus has strengthened Nationalist attitudes which wreaks havoc on international trade. There recently have been “calls to suspend the 1985 Schengen agreement, which eliminated border checks in a 26-country region” of Europe (Lynch & Whalen, 2020). This halt in travel is causing millions of dollars of losses for the tourism industry worldwide. Even countries that have not reached Level 2 or 3 advisory warning are feeling the loss from tourists in nations that cannot travel anymore. Most citizens globally that are invested in the stock markets are also feeling the effects because “since Jan. 20, the disease has stripped $4 trillion from the value of global stock markets” (Lynch & Whalen, 2020).

Source: https://www.washingtonpost.com/business/2020/02/27/europe-confronts-coronavirus-fallout/

 

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