Business Communication Report: Coronavirus's Economic Impact Analysis

This business communication report analyzes the economic impact of the coronavirus outbreak, focusing on its effects on global markets and various sectors, particularly in the UAE. The report examines the disruption to supply chains, the decline in oil prices, and the impact on the tourism industry. Findings indicate that major companies issued market warnings, and the quarantine efforts to stop the outbreak from crippling supply chains have had devastating consequences for businesses worldwide. The report highlights the deterioration of business conditions in the UAE, with a decrease in the Purchasing Manager Index, and anticipates that sectors like leisure, travel, and luxury shopping will suffer the worst. The analysis concludes that the coronavirus has significantly affected the global economy, with potential short-term impacts felt in sectors such as airlines, hotels, and retail. The report also references the impact on oil prices and the potential decrease in economic growth for the GCC region.

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Business Communication
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Table of Contents
Introduction......................................................................................................................................2
Findings...........................................................................................................................................2
Conclusion.......................................................................................................................................3
Bibliography....................................................................................................................................4

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Introduction
Coronavirus is one of the viruses that cause illness from the common cold to more severe disease
which include Severe Acute Respiratory Syndrome, Middle East Respiratory Syndrome. Its
outbreak have great impact over the world’s economy to the certain extent (Organziation).
In the following part there will be detailed analysis of impact of coronavirus on the economy of
all over the world that can affect their GDP or revenue of the country to the certain extent.
Findings
While major companies give market warnings, and China has reported the toll on its
development industry, this week the increased costs of the epidemic of coronaviruses are likely
to be clearer for enterprises and the world economy. In February, a fresh overview of industrial
activity in the second biggest economy in the world will be released, as a quarantine effort to
stop the outbreak from crippling supply chains, which will have devastating consequences for
businesses around the globe (Partington).
The world is hysterically high above an uprising in China with global markets responding
fervently to the effect of the world's second largest economy and largest trading partner of the
UAE on economic growth. Locally, business conditions in the UAE have deteriorated in more
than a 10-year period for the first time as the epidemic causes more disruptions in the trade and
tourism of the Gulf. Burnard emphasizes China as the top exporter of clothes and textiles and its
essential role in the global supply chain, as the main expenditure on international tourism. He has
predicted that the global impact from this latest epidemic could touch three to four times as much
as the SARS blast of 40 billion dollar in 2003 by Warwick McKibbin, professor of economics at
Australian National University. According to IHS Markit, business conditions worsened in
January in the UAE, which is the second largest Arab economy. He adds that the country's
Purchasing Manager Index showing a statistical measure of improvement in the nation's non-oil
private sector decreased to 49.3, dropping from a threshold of fifty that differentiates between
growths. Burnard anticipates that leisure, travel, luxury shopping and building are the UAE
sectors that will suffer the worst (AMEinfo Staff).

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Recently there was a good example of the influence of China on the supply chain of the
construction industry. In New Zealand, a seller of bathrooms was forced to explain the DVD
produced by the supplier because the Shanghai plant is locked. The Middle East has prompted
Saudi Arabia, the Organization of Petroleum Exporting Countries leader, to call an emergency
meeting, according to officials from the OPEC, as crude oil demand fell 16% after China
detected the Coronavirus. Recently, after fresh reports of coronaviruses, stock markets
worldwide plummeted again, rekindling concerns about the global economy. Particularly harsh
were the shares of airlines and travel companies. Fears that the decline in economic activity,
particularly in China would impact demand have also sharply reduced oil prices. Several
businesses have advised against the impact on their trade of coronavirus. Philips reported on
Tuesday that the epidemic had an effect on China's market for its goods and also affected its
global supply chains Dutch consumer and healthcare electronics business (Augustine).
(Lee)

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For the GCC, oil prices, economic growth, and immovable prices may decrease, together with
government expenditure adjustments. "We assume that the effect on our ratings for now is
minimal in the case scenario. While it is anticipated that the negative impact on oil prices will be
short-term, in response to an expected slowness in Chinese economic growth from 6.1% this year
to around 5% the rating agency said the impact will be evident in terms of export volumes. As
far as oil exports are concerned, Oman is China's most exposed GCC region, reaching 45.1%,
and the UAE is only the least exposed at 4.2%. S&P expect to see the current production limits
of the OPEC stretch through March, which might impact GCC countries ' current earnings. S&P
hopes to see average oil prices reach $60 a barrel by 2020. The effects could be short-term felt in
sectors like airlines, hotels and retail. The report indicates that the 2018 visit of GCC to 1,4
million Chinese tourists would hit 2,2 million by 2023. However, less tourism across the GCC,
especially the UAE, could have an effect on that virus (Augustine).
Conclusion
From the above analysis it can be concluded that Coronavirus is one of the severe infection that
affect the whole economy of the world to the certain extent. The business of the other countries
is also highly affected due to such virus. The oil rate in UAE fallen down as well as their
hospitality industry. It is also highly affected from such virus sue to the reason the number of
chine tourist are high in UAE. Therefore, the tourism industry is highly affected and going
slowing down to the certain extent.

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Bibliography
AMEinfo Staff. Economic effects of the Wuhan Coronavirus on UAE businesses. 09 02 2020. 28
02 2020 <https://www.ameinfo.com/industry/finance/economic-effects-of-the-wuhan-
coronavirus-on-uae-businesses>.
Augustine, Babu Das . How coronavirus will hurt UAE, Gulf economies if not contained soon.
17 02 2020. 28 02 2020 <https://gulfnews.com/business/how-coronavirus-will-hurt-uae-
gulf-economies-if-not-contained-soon-1.69763830>.
Lee, Wayne. OPEC Downplays Impacts of Coronavirus to Oil Demand. 28 01 2020. 28 02 2020
<https://mansfield.energy/market-news/opec-downplays-impacts-of-coronavirus-to-oil-
demand/>.
Organziation, World Health. Coronavirus. 01 2020. 28 02 2020 <https://www.who.int/health-
topics/coronavirus>.
Partington, Richard . Economic impact of coronavirus outbreak deepens. 23 02 2020. 28 02 2020
<https://www.theguardian.com/business/2020/feb/23/economic-impact-of-coronavirus-
outbreak-deepens>.