Until a treatment for Coronavirus (COVID-19) appears or spreading of the virus is curved, and until lockdowns end around the world, not just in the US, international trade and immigration are significantly declining. The unprecedented scale of the shutdowns put in place as a result of the unknowns surrounding the spread of COVID-19 has exacerbated the economic decline and halted economic growth in the US as well as around the world.
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The outbreak has affected global supply chains because lockdowns have spread throughout the world, and some of the world’s largest economies have been forced to a halt. Disruptions in global supply chains are making it more difficult for US companies to bring goods to US consumers and exports from the US are reduced. Businesses and households in the US are facing a severe decline in revenue, businesses are laying off workers- both US workers and foreign nationals- because of the lack of work and income, and households are dealing with a severe crisis because their income is either reduced or terminated. This affects demand for goods because households are becoming very conservative consumers, they are spending less, especially on non-essential goods, because they are worried about the virus, and they are worried about the effects of this lockdown and economic downturn on their jobs and income in the long term.
The airline, hotel, and automobile industries are some of the hardest hit right now, but the impact on other industries and the service sector is spreading. The uncertainty relating to the scale of the virus, for how long it will keep spreading, how far it will spread, and when a treatment will be available, are the main factors driving the economic disruptions and until those questions can be answered the negative economic impact will only grow.
Elsa Ayoub represents the New York City area in Business Immigration as part of the exclusive Haute Lawyer Network. To book a consultation with Ms. Ayoub, contact law@hauteliving.com
