The Coronavirus Pandemic Will Cause a Global Recession And It's Not All Bad News

The recession has already begun, we are now in a phase where the global economy is in a state of shock with the coronavirus pandemic momentarily grinding the whole global economy to a halt. And the results can be devastating!

The Bullwhip Effect — The Global Economy Is An Object In Motion

While doing my Master’s degree in Industrial Engineering, a term that I would often come across would be the Bullwhip Effect!

As manufacturers anticipate less demand from end consumers, they source less components, freeze hiring, and this chain continues to the sub-component manufacturer, all the way to the source, causing a bullwhip effect.

In short — a delayed chain reaction causing a massive disruption to the connected global supply chain.

The Travel & Hospitality Industry — The First Casualties Of The Global Collapse

In an effort to contain the global coronavirus pandemic, authorities and governments across the world have scrambled to close borders, reduce travel and ensure social distancing and isolation to avoid the spread of the disease.

Lockdown in Italy
Usually packed with travelers, an empty street in Thailand

It’s Only a Matter Of Time Before Every Industry Is Affected

We are now in a phase where businesses are unsure of the future ahead. As the demand for goods and services reduce due to fear and panic, businesses are forced to delay decisions, and spend only when necessary.

As a Jobseeker

If you’re a job seeker, either a recent graduate or about to graduate, know that almost every business is worried about the future of their company and the anticipated fall in business.

As a Startup Founder

As a startup founder, your first thought should be on how to minimize expenses and maximizing your startup’s runway as much as possible to get through with the slump.

As an Investor

Market sentiment can be bad, businesses in your portfolio that may even have a sound business plan could face an uncertain future, such as the ones in the travel and hospitality industry.

The Outlook Ahead

The next few weeks and months ahead could be some of the toughest times ahead. Wise financial planning, saving for the future, staying lean on your expenditures will be the deciding factor for you to come out of this global recession without a huge toll on your personal savings and well being.

Enthusiastic about startups, tech and the economy.