The Financial Effects of COVID 19

The world is fighting an invisible enemy who is threatening the economic activities of various nations. The source of strength to many people lies in the advanced financial systems that boost small and large businesses. There is a growing concern over credit losses and market volatility. The good news is that central banks, governments, and international institutions are taking preventative measures to escape financial fallout and economic collapse.

The big question is, will the set policies preserve financial stability? It is every stakeholder’s prayer that the world overcomes the COVID 19 pandemic and registers some economic growth. Well, finding this magic formula is what is leading many financial strategists are looking for. Many countries in Europe are still battling with this enemy to ensure that they overcome the consequences that the virus brought to the economy’s smooth running.

One of the severest outbreaks in Europe is job cuts and unemployment. Some institutions have begun to operate on a reduced workforce while other companies have forced employees to go on leave. For those who lost employment, they are at risk of losing financial stability. There are restrictions of movements due to a lockdown in various regions, this has caused manufacturing companies to experience a slow movement of goods and services. As a result, many companies record fewer sales hence a reduction in profit.

The airlines have also not been spared. Many nations in Europe have imposed travel restrictions to both local and international airlines. Only cargo planes that carry essentials can move from one destination to the next. Passenger planes have been hit the hardest, hence their income reduced by a considerable margin.

Since the coronavirus burst into the scene, many land-based casinos were closed down. Most gamblers turned to online games. But with the cancellation of many sporting events like soccer, bettors have very limited opportunities to place their bets.

Fortunately, most European countries, the US, Canada and Asia are easing restrictions, several sports leagues are resuming, hence catching the gamblers’ attention. As long as the league is operational, sports betting will prevail. To the far end, online gambling is still growing in nations like Canada. Annually, the online gaming industry in Canada generates roughly 31 billion dollars. And both new and well-established casino operators, such as Dreamz, BetWay and Casumo to name a couple, now have a focus on the Canadian market. And this year, the industry will thrive further as a result of a flexible gambling rules and the technology advancement experienced in Canada. The new development in technology brings convenience and easy access to online casinos.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.