Unexpected coronavirus impact on global economy | Join Japan

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Unexpected coronavirus impact on global economy

Unexpected coronavirus impact on global economy

The coronavirus epidemic continues to gain momentum. It has sickened total of 542417 people all around the world. Considering that COVID-19 is transmitted via respiratory droplets that people sneeze, cough, or exhale it is extremely easy to get infected. That is why government of many countries enhanced control at the borders and airports. In some countries borders were completely closed long-distance intercity travel was restricted.

This situation cannot but affect the economy. The spread of coronavirus collapses financial markets, stops plants, reduces trade and investment flow, devastates hotels and restaurants. World experts predict global economic crisis. But is the situation really this bad?

Join Japan team found out what business opportunities coronavirus epidemic can bring.

The growing popularity of distance communication

Employers began to actively transfer their employees to remote work, which leads to the development of home-based work technologies. The largest IT companies in the world took such as Facebook, Google, Amazon, Alibaba, Twitter, Slack and Microsoft have already sent their workers home. 

Experts predict an increase in demand for technological solutions that make remote work possible and increase its efficiency.

The virus spurred demand for remote access workstations and teleconferencing solutions. The possibility of telepresence will also contribute to the spread of remote work. That means an employee will be able to monitor and control the process remotely, and the work itself will be done by a semi-automated system.

Internet access social role is undeniable during quarantine. That is why Comcast and T-Mobile have improved the terms of their Internet tariffs. The Folding@Home project invites everyone to share the computing power of their computers for virus research. 

An epidemic as a boost to growth?

There are many examples when a business began to flourish as a result of increased demand for specific products during an epidemic. And this applies not only to manufacturers of sanitizers, soaps and protective masks.

“With the crisis, opportunities come,” says Elspeth Chen, Global Director of a consulting company Canter Millward Brown. Delivery services also gained popularity. If earlier delivery was associated with ready-made food, during coronavirus epidemic it also becomes relevant for products from supermarket.

Experts also predict an increase of sales in the automotive industry when the epidemic ends. With the spread of the virus many people realized the importance of having their own vehicles, rather than using public transportation. In response to these demands, some car companies are selling test drive tickets online in anticipation of sales after an epidemic has subsided.

With the growing popularity of distance communication, the shares of Zoom, a video conferencing service provider, have nearly doubled since February compared to early January. The company lost money in the second half of 2019, but the sudden increase in number of people working from home made its share price higher than ever before.

Interesting fact is that the stock price of Zoom Technologies, a company with a similar name, doubled in February. This misunderstanding lead to investors having bought stocks with the wrong company name.

The performance of Slack Technologies, Slack business chat provider, is also growing rapidly, with stock prices up 30.3% in February.

Coronavirus and innovation

Scientists around the world are working on developing an effective vaccine and drugs against coronavirus. Although these studies are so profitable that they tend to be closed-end, in these difficult times of pandemic various research institutes do not seek patents in the pursuit of profit. Studies are published at a rate of 100 articles per day. Thus, we are witnessing an increasing trend of publicity of scientific research on a global scale.

Also there is an increase in IT - developments. For example, an application that displays the risk of infection has been released in China. After entering the number and type of public transport one intends to use, the application shows whether an infected person was in a particular carriage.

One enthusiast used machine learning and created a funny project named “Don't Touch Ya Face”: a site that makes sure you don't touch your face with your hands.

Join Japan team hopes that coronavirus epidemic will become an impetus for cooperation and the convergence of countries around the world and the emergence of new innovations. We will continue to support start-ups and businesses around the world.