How the Coronavirus is affecting our economy
CHATTANOOGA, Tenn (WDEF) -There are currently 53 cases of Coronavirus in the U.S and as the number raises so does the panic.
The Center for disease Control says the question is no longer if we will see the Coronavirus spread in the U.S but when.
Fears about the spread of cases outside of China have sent financial markets into a dive.
Is this going to affect our country drastically?
This sparked the questions: if such a corona virus outbreak will affect our economy and if so will how bad will it be?
“There will be a real impact on the global economy, there’s no question. It started in Asia. Asian economies are going suffer as a result of this. Production is going to decline. Many of the parts and components that we rely on in our economy, we import from China. Our ability to get those parts and components that we import is going to be restricted now; as production will be declining,”says Chris Hopkins, Barnett and Company Investment Advisor.
In the United States the stock market has already taken a hit and so have some major businesses.
“Apple reduced their estimated earnings because they expect; not only the demand in their Asian market to decline but also potentially shortage of parts that they import from Asian factories,”says Hopkins.
Statistics show the sector of the economy feeling the largest impact is the travel industry.
“Airlines have been suffering they have seen 8 to 10 percent decline in their stocks as a result of really two things; one of those is if they have reduced or eliminated service to their Asian markets and that hurts their revenues but secondly again the fear factor has caused people to postpone their travel plans,” says Hopkins
If you do plan on traveling internationally there are some ways you can double check if it is okay to travel there and what warnings your destination may have.
Just go to travel.state.gov type in your destination and any travel advisory you need to be aware of will pop up along with other information.
Officials also want to help calm the fear that you will get the Coronavirus if you order a package off websites from China.
“It seems like the transmission is more of direct contact and perhaps droplets in the air. In terms of you buying a package through amazon that came from China, the odds of acquiring any kind of infection that way are practically minuscule,”says Hopkins
Experts say the threat to our economy is mainly short term and the effects shouldn’t last long.
“If you are a long term investor, your 401k for example, this is really a nonissue. You just keep putting your money in every paycheck, you invest that money and you average that 30 years from now. In fact, 5 years from now you won’t even remember that this happened,”says Hopkins.