Here are the top 3 sectors most economically impacted by the coronavirus crisis

A mall in Saudi Arabia. (File photo: AP)

As the coronavirus pandemic has continued its spread across the world, markets have been gripped by fear as investors flee a potential recession caused in the virus’s wake. Some sectors have been particularly hard hit as the economic cost and various shutdowns harm core business activities.

According to data from financial publication Learnbonds.com, industrial goods, finance, and services have been the three worst hit sectors, as all face critical issues caused by the coronavirus.

Industrial goods

Industrial goods stocks are down 19.6 percent over the past seven days, according to Learnbonds.com. Machinery and manufacturing, the core trade of industrial good firms, have been harmed as factories have shut down in China, the Asian-manufacturing powerhouse, and subsequently elsewhere, to prevent the spread of the coronavirus. In Europe, car manufacturers across the continent have announced that plants are to close.

Over January, the stocks in industrial goods fell 34.6 per cent.

Finance

Finance stocks have fallen 14.6 percent in the past seven days, the data showed. Central banks across the world have moved to support their various finance sectors to avoid a possible liquidity crunch caused by the virus.

In the Middle East, central banks in Saudi Arabia, the UAE, and Egypt collectively pledged over $47 billion to contain the economic fallout of the coronavirus on Sunday. On Wednesday, Oman Central Bank said it was preparing $20.8 billion in extra liquidity to banks.

According to Learnbonds.com, finance stocks fell 32.1 percent in January.

Services

Service sector stocks likewise fell 14.6 percent in the past seven days, according to the data. The service sector includes all business outside of providing material goods, including retail, education, social work, and communications.

With authorities placing substantial restrictions on movement and places of work shutting down, many companies in this sector have been unable to conduct business. In the UAE emirate of Dubai, all theme parks, entertainment destinations, including night clubs, cinemas and concerts and all hotel bars, pubs and lounges have been shut.

In January, service sector stocks fell 26.8 percent, according to Learnbonds.com.

The virus has infected over 200,000 people worldwide, with over 8,000 dead. More fatalities have been reported in Europe than in Asia, where China was the epicenter of the virus.

Read more:

What kills more people? The coronavirus or the economic recession it’s causing

Saudi Crown Prince: G20 states will work to reduce coronavirus’ economic impact

EU warns of ‘economic disruption’ after Trump imposes Europe travel ban

SHOW MORE
Last Update: Wednesday, 20 May 2020 KSA 10:05 - GMT 07:05
Top