The economy has come to an abrupt halt as supply chains break and anxiety spread all over. Millions of businesses have been impacted by the supply chains disruptions and this has triggered the biggest economic collapse since the 2008 global financial crisis.
CEO’s of various American companies that rely on Chinese supplies are complaining because of the decline in output. Imports have drastically dropped and there is a very high risk that thousands of employees will be laid off because of this slowdown. Many businesses in the United States cannot do business with foreign suppliers especially those from China and this is affecting the operations of hundreds of businesses.
Many economies have been affected by the current economic conditions and economies like the United Kingdom, China, United States and Europe will be affected in a big way. Literally the whole world is in an economic trouble. It looks like we will experience a global bank collapse if this trend continues. Interest rates are headed to zero or even negative because the Federal Reserve has already begun cutting interest rates. They have also expressed the willingness to continue slashing the interest rates if this economic slowdown continues.
Hundreds of global companies have been hit in a big because their operations have been disrupted. This has lead to reduction in sales and economists are expecting that the global output will shrink by $2.7 trillion by the end of this year. Probably for the first time in the last 10 years, the global GDP will reduce by several trillions of dollars.
Business travels across the world have been affected and big companies like Amazon. Facebook, Microsoft and Apple have restricted their employees from travelling overseas. Business executives from various companies also cannot take business trips to manage company operations in foreign nations. This is delaying many projects and companies are losing billions every day. In some of the US companies, employees are being forced to work from home and restrictions are being imposed in various companies. Travel has been halted for the corporate America and the consumers and as a result the whole travel industry might be headed for a major collapse. This means that hotels. Airlines, cruise ships and restaurants will see a very sharp decline in the number of customers. Companies are entering into a period where they will report the lowest income in a decade.
Over the years, China has turned out to be a very big player in the global supply chains and the whole world is connected to the Chinese manufacturing sector either directly or indirectly. This means that the current disruption is supply chains will affect the whole world. This will be felt in weeks to come as warehouses that are spread across various places dry up. Many firms and businesses are currently experiences a big decline in their operations and some are almost to a point where they will be forced to shut down their businesses. Billions of dollars are being lost and it looks like the world has been hit by the worst economic storm and bank crash in history.
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