Coronavirus supply chain shock spreads globally
(18 March 2020 – Global) Across Europe, corporate powerhouses such as Airbus and VW have shuttered assembly lines in an effort both to reduce the spread of the virus. Many manufacturers in the US are converting to respirator and medical equipment assembly, emulating wartime measures witnessed by Ford in Detroit during World War II.
Commodity based economies such as In Peru, Chile, Canada, Australia and Mongolia have declared states of emergency, instituting nationwide lockdowns and leading to major mining companies such as Freeport-McMoRan and Newmont to curb production. Countries across the glove are taking drastic measures to stop the spread of Coronavirus after many reported cases were imported from elsewhere.
Australia and New Zealand announced they would block all international visitors from entering, regardless of where they've been, while citizens and residents returning from abroad would have to undergo a 14-day quarantine. Compounding the supply side hit is a demand plunge as millions of workers lose their jobs and consumers who remain employed have to stay indoors. Unemployment rates and claims are forecast to sky rocket in Q2 2020.
“This is kind of a rolling natural disaster. In terms of the impact on global production, the shutdown outside of China will likely become bigger than the impact from China” stated Bank of America Head of Global Economic Research, Ethan Harris.
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