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The economic impacts of Coronavirus

3 replies

WashHandsTwentySeconds · 04/03/2020 21:37

So it looks like Flybe is going to go under imminently

metro.co.uk/2020/03/04/flybe-collapse-days-coronavirus-spread-hits-sales-12350017/

To be fair, Flybe has been on its last legs for a few years now, so it's no great surprise. But it does make one think about the knock on general economic impacts that will come.

Global stock markets have been severely impacted. And before people think, oh that doesn't affect me, then for example if you have a pension it very much does. Many other sectors invest in stock markets to get return on equity.

Tourism is already being hit massively. Holiday bookings are down, impacting flights, hotels, tourist destinations. This in turn will impact provision of things like hospitality or cleaning.

The large financial groups of the world (World Bank, IMF, national regulators) are already forecasting low economic growth in the next year as a result, with poor countries at heavy economic risk.

Are you worried about the broad economic impacts that may come about ? Or do you think it'll just be like normal economic cycles where it'll be painful for a while with a bounce back?

OP posts:
Gammeldragz · 04/03/2020 21:56

Definitely worried, yes. We all should be. I mean, economists and rich people are worried, so...
Pensions (long way off for me), house prices (not that I own one) etc are all things normal people are impacted by, so although stock markets don't seem like an 'us' problem, the global financial impact of this will likely affect all of us.

One thing I don't get, the US bank/money people cutting interest rates to try to stop a big crash - how does this help? Apparently it hasn't, yet, but I wondered if anyone knew what it was meant to do? I have read a little around economics, but I don't get it.

ferretface · 04/03/2020 21:57

Flybe has definitely already gone bust, planes are being grounded and impounded already, they will wait til the last plane has landed to announce. Very sad for the staff, the staff at the regional airports who depend on the airline and those who rely on these routes :(

JellyfishandShells · 04/03/2020 22:00

Or do you think it'll just be like normal economic cycles where it'll be painful for a while with a bounce back?

Yes - this.

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