What is the Global Economic Impact of the Pandemic

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While there is as yet no estimate for the economic cost of the global COVID-19 novel coronavirus pandemic, there is agreement from economists worldwide that the impact will be severely negative worldwide. Whilst some established online businesses have thrived, many land-based companies will be dealing with the effects for many years to come. Here we look at the global economic impact of the pandemic on sports, tourism and other industries, with a look at how individuals can find alternative income streams. 

Closed businesses

With falling demand across almost all industries aside from groceries, companies have been laying off staff to make up for lost revenue. This is likely to create a downward economic spiral when these newly unemployed workers can no longer afford to purchase unaffected goods and services. Economists are concerned that the pandemic could lead to a global recession on the scale of the US Great Depression in the 1930s.

The pandemic has also disrupted global supply chains with a long-term economic impact which will ripple for years. There has been a moratorium on any new start-up businesses whilst smaller companies have run out of cash after a month-long interruption in business, which means many more could lose their jobs than already have. 

Alternative income stream: online sports betting

For direct online sports betting for profit, look for value bets, those mispriced by the betting house with a negative margin. There is also spread betting but matched betting can lock in a profit, where you buy and sell promotional bets at different prices at different places. 

There is plenty of information online to find the best sports betting and casino sites. These can be searched to be relevant for each country such as online casinos in Bulgaria which will help you find the best site for your needs. This site lists the large bonuses available to new players, as well as regular promotions for old and loyal customers in the country. 

Tourism

Historically, worldwide tourism has been resilient to external shocks, with only SARS (-0.4%) and the global economic crisis (-4.0%) leading to declines of -0.4 percent and -4 percent respectively. However, the impact and recovery from the COVID-19 pandemic is unprecedented. With no vaccine and limited medical capacity to treat the disease, travel restrictions and lockdowns, global tourism has slowed down significantly, with the number of global flights dropping by more than half and passenger numbers declining even more steeply due to social distancing on “full” planes. 

When it comes to accommodation, guest numbers have declined by 50 percent or more, with Italy and Greece particularly hard hit, whereas Seychelles and New Zealand have fared better due to large visitor numbers in March and tourists opting to ride out the crisis in these countries perceived as safer. 

Lack of sport

Major sporting events have been disrupted by the pandemic that has impacted revenue streams, sponsorship, production and distribution of media rights, as well as ticketing and in-stadium corporate hospitality. Sports have been either canceled or rescheduled. 

Taking soccer as an example, the top five European Leagues stand to lose between EUR3.45 and 4 billion, according to KPMG, with the 2020 UEFA European Football Championship (Euro 2020) postponed until summer 2021. If the soccer season is not concluded in Europe, millions of euros will be lost due to the non-delivery of live matches to broadcasters. 

Fortunately, many sports organizations are focusing on online content with streaming of games including chess tournaments being played from players’ homes to virtual competitions from eNascar and first forays into esports. 

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