News about the spread of the COVID-19 fills the headlines day by day. For now, the situation in China seems to be calming down, but at the same time, it is drastically deteriorating in other parts of the world. If you have your own business, you may be wondering how will the coronavirus impact your client income? What are the economic consequences? And should you start searching for reliable moving companies in Saudi Arabia in order to move your office somewhere else? It may seem like a drastic measure, but it depends from case to case. That’s why we will try to give our best answer to these dilemmas in the following article, so read on.
How can you tell will the coronavirus impact your client income?
One can never be too sure will the coronavirus impact your client income, but there are some pointers. For now, the COVID-19 affects the world economy through several different channels. Quarantine measures that limit travel and transportation, but also normal business and production, have a direct impact on several industries. For example, industrial companies have to reduce production even though they are in areas where the virus has not yet been detected because they are part of a global supply chain, This means that semi-finished products are circulating between countries much more than ever before in world history… So industrial production is quite vulnerable to potential supply disruptions.
In this way, the parts and semi-finished products that are necessary for work are no longer imported. As an example, the factory in Germany is reducing production because a factory in Malaysia has been closed, since parts from China are no longer coming to it, etc. Some factories can continue to operate more or less smoothly because they have stocks of raw materials, or they can procure them from other suppliers. To illustrate, Riyadh customs clearance is working better than ever, serving its clients in the usual way. However, the problem arises when you fill the stocks with products. So the question also arises as to whether they can be procured elsewhere at all, probably at a higher price and lower quality.
Tourism will need time to recover
One of the sectors that will be significantly affected due to the outbreak of the corona virus is certainly tourism. This refers not only to the reduction of international travel, but also domestic… As well as the accompanying catering activities: restaurants, clubs, and cafes. Many hotels are looking for hotel logistics services in order to lower their expenses. The tourism sector, together with related activities, is one of the important sectors in the whole world. Of course, the share of tourism is higher in Mediterranean countries due to sea tourism. Still, winter tourism (mountains and ski resorts) and visits to larger cities are also important.
A potential positive thing about this is that there are some indications that the virus may be affected by the sun (not heat, but UV radiation). Many of the people are relocating due to this reason – not just their business but their households as well. That’s why moving services are also on the rise. Some say that that this will lead to the stabilization and withdrawal of the virus. Still, whether that will really happen is just a guess for now. All you can do is just check the news regularly and try to explore your options. The same goes to your clients.
The world is entering a recession
Statistics show the world is entering a recession and will look different when the pandemic ends. Central banks, primarily the US Federal Reserve, have resorted to pumping large amounts of money and lowering interest rates to help the economy. However, interest rates were at the historical minimum even before the outbreak of the pandemic, more precisely 0.75 percent in October, and now are almost at zero. Investors have long profited from pumping money into financial markets after the outbreak of the financial crisis in 2008 to help revive the economy. So you can never be too careful when it comes to saving money.
The economy will surely look different after the pandemic
It seems that the outbreak of a pandemic could not have come at a worse time for the economy. Experts say that reducing interest rates alone, without other measures, will not help the economy. The pandemic also exposed the dependence of the world economy on China. At one point, it seemed like the supply from this “global factory”, as they call the most populous country, was almost stopped. Companies around the world face liquidity problems, regardless of the measures of governments and central banks, which may soon call into question their solvency.
There is more than one problem here: the solvency problem means unemployment, a deeper recession, and longer-lasting scars on the global economy. After the pandemic, companies will start to think differently about efficiency and economy. The same goes for society, that will surely think more differently about how people act.
To sum up
You can never be too sure will the coronavirus impact your client income. It depends on many factors. What does your client do? And even – how many clients do you have? Can you do something to promote your business more? All this needs to be taken into consideration. That’s why it would be wise to explore all your options and be updated at all times. Good luck!