Coronavirus effect on economy.docx - 1 Professor Adir Dos Santos Mancebo Junior ECO2013 17 March 2020 Macroeconomic effect on the coronavirus outbreak

Coronavirus effect on economy.docx - 1 Professor Adir Dos...

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1 Professor Adir Dos Santos Mancebo Junior ECO2013 17 March 2020 Macroeconomic effect on the coronavirus outbreak As of March 2020, the number of people infected with the Covid-19 has almost surpassed 200,000, with nearly 8,000 deaths. In order to contain the outbreak, many counties have full or partial quarantines. As the number of cases and deaths across the world continue to rise, the virus is also taking its toll on global economy. The outbreak started in China, which is the heart of complex supply chains for many companies located out of China due to offshoring. This country has also by far the most coronavirus cases, which makes this situation even worse. Many factories had to close their doors, resulting in shocks across a wide range of industries. For instance, the South Korean carmaker Hyunday announced that situation will halt their production in domestic countries because of the components shortage. Many other companies around the world also announced that they are running out of components and might have to reduce or halt their production.
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