The world is currently facing a severe viral epidemic due to coronavirus outbreak in Asia that has spread to other parts of the world. It has severely impacted the Travel and Tourism industry as people across the globe have been advised to cut down on unnecessary travel. The crude oil price has collapsed and OPEC is mulling cutting oil output to bring supply in equilibrium with demand. Factories in China had to close for an extended period to cope with this unprecedented situation. It led to decline in demand for commodities especially in China on account of the extended shutdown of manufacturing units in China.
China is considered the manufacturing engine of the globe and so any loss of production in China can impact the supply of key products across the globe. As of now, the focus of the world is to contain the spread of this virus with minimal loss of life. Its time for the world to diversify its supply lines and not rely on a single country and this is a key lesson from this epidemic. The economic recovery is expected to be swift once the situation normalizes and we hope that mankind is better prepared to deal with such epidemics in future
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