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Hungary & Europe – Here are the worst economic impacts of the coronavirus
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Tourism declines, there is a significant downturn in air transport, factories close, major developments are terminated, and unemployment is rampant – these are the things listed among the worst economic effects of the coronavirus. Let us see the most serious impacts on the European and Hungarian economies.
Europe
News can be heard about the drastic steps taken in Europe – including the cessation of production, the closing of factories and shops, staff reductions, profit warnings – carried out by great international companies (along with governments and economic professionals) due to the spread and devastating effects of the coronavirus.
According to Hungarian news portal Portfolio, the worst economic effects of the coronavirus in Europe can be listed accordingly (in chronological order):
In the first phase, authorities tried to trace the routes of the infection in order to defeat the disease. This was realised by local restrictive action.
As a result of the security measures, a significant decrease has been seen in the tourism sector, including hospitality, event management, and transport services.
When the majority of governments realised that mass illness cannot be avoided, the epidemic arrived at its second phase.
The territorial and personal quarantines, movement restrictions, and introduced steps against further infection have a serious impact on the economy of every European country (and globally as well).
These steps led to factory closings, the shutdown of services, supply difficulties, and serious problems in the global value chains. Beyond the immediate, severe economic effects, these challenges endangered other non-touristic companies as well.
