Statistics show that the first case of coronavirus infection was reported four months ago, but even such a short period of time was enough to paralyze the international economy.
The fact is that there is no vaccine against the new disease, and the best tactic in the current situation is quarantine. For a market economy, any isolation is disastrous, especially when it comes to global systems where falling out of one of the elements can cause a chain reaction. A great example is the situation with OPEC, when the decline in oil demand changed the incomes of states and the economy began a recession.
But this is only the tip of the iceberg, and we should not forget about the factor of production. As of Thursday, March 26, a large number of industrial enterprises have been closed, and the service sector has faced a shortage of demand. If industry can keep itself afloat by waiting to supplies, the service sector, where most of the population is employed, suffers huge losses.
Given that each of the major manufacturing or servicing companies has a huge credit line, the situation looks catastrophic. Loans need to be maintained, but conditions do not allow for profit. All of it makes it clear that we are to face a global production and consumer crisis.
Vesna News — official website