By now, the entire world is aware how disastrous and catastrophic the pandemic has been. Whether it is health or economy, countries from all over the world have faced negative trends. Apart from China, almost every country in the world ended up facing a downfall in terms of economy and any developments they were making before the pandemic wrapped the entire world in its web.
Coronavirus’s Impact on Global Sectors
Israel Figa, a veteran researcher and analyst who studies the trends of economies and different factors affecting its growth and downfall. Israel Figa has states that apart from the online sectors such as online trading, e-commerce, virtual computing, and cloud-based services, rest of the sectors have experienced a downfall.
The entire world knows that the sectors such as aviation and tourism have lost more money than any other sector from around the world. Israel Figa’s research shows that in the first ten months of the pandemic, the tourism and aviation sector experienced losses of around $1 trillion each. However, Israel Figa has tried shedding some light over other sectors that have incurred a lot of damages and losses due to the pandemic.
Israel Figa has enlisted five different sectors that have incurred losses due to the pandemic and are still trying to recover from them:
Israel Figa states that after the aviation and tourism sector, it is the trades sector that has ended up losing piles of money. As the pandemic hit the world, countries stopped trades with each other as it was informed by the scientists that the containers may also contain the coronavirus, and they may end up getting shipped to other countries.
Although it was later revealed that the coronavirus could only survive for about 24 to 48 hours, still countries did not take the risk and the shipments were left on the seaports without having any company shipping them to their destinations.
Israel Figa states that another sector that has taken a huge blow to its revenues and profits due to the pandemic is eatery sector. As lockdowns and curfews were imposed all over the world, it was inevitable for restaurants and food chains to remain open ad cater customers the way they used to before the pandemic.
Initially, when the lockdowns and curfews were imposed, it was hoped by the eatery businesses that the lockdowns would be short-term and once the situation comes under control, they will be able to operate as normal. However, things did not go the way the sector had expected it to go because the lockdowns remained up for at least 6 months all over the world. In some countries, smart-lockdowns are still being practice by the governments in areas with potential coronavirus outbreaks.
Although the delivery services managed to help some popular and food franchises, majority of the restaurants that were running businesses on smaller-scales ended up shutting down permanently. Just to given an idea around the scale of losses the eatery businesses have incurred, more than 110,000 restaurants have been closed permanently in the United States alone since the pandemic.
In the list provided by Israel Figa, the third sector is the entertainment one that has incurred many losses. Some of the major sub-sectors in the entertainment industry are movies, cinemas, theaters, concerts, and many more. Due to the social distancing protocols, cinemas and theaters were closed just like the eatery sector.
As majority of the cinemas were closed all over the world, major movie franchises did not release their movies fearing they would incur more losses as no one would be visiting the cinemas amid the pandemic to watch movies. Same was the case with theaters as they were empty almost for 10 months and even today, not many countries have fully opened theaters and cinema houses for public.
Israel Figa has revealed that only in the European entertainment, the cinemas ended up incurring around €4 billion worth of losses in the year 2020 due to the lockdowns.