Previously I commented some preliminary already tangible aspects on the economy, regarding the coronavirus, yet the most important one remains. Prolonged Supply Chain Disruptions. This crisis has shown the heavy reliance the world has on China fo manufacturing. With a significant portion of its economy shutdown, overseas retailers depend on previous product stock to supply the markets. Nevertheless, since this shutdown doesn't appear to end soon, and neither does Covid-19, remaining stock will run out eventually. Recently, the first crisis-related drug shortage was identified in the US. Now, there are plenty of companies abroad that relay on Chinese manufacturing, and for companies to stay afloat amid less sales due to less product availability, is lo lay off workers. When workers are jobless, they won't spend much, further reducing demand, which is already dimming because of the prioritization on buying essential goods ahead of the imminent crisis.
Markets are tanking with deep corrections as well as bond yields lowering to record levels, neither the market nor the health sector see a near end to the situation.
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