GREENVILLE, N.C. (WNCT) –
The coronavirus is negatively impacting the economy.
“What the coronavirus is doing is in many ways interrupting a supply chain,” said ECU Director of Professional Services and Research James Kleckley.
The stock market hasn’t seen a week of losses like this since the 2008 financial crisis.
The Dow Jones Industrial had a record high in early February, and is now seeing a loss of thousands of points.
“I don’t think we’ll see what we saw after the financial crisis no. What we’re seeing is a correction,” said Kleckley.
A correction in the stock market happens when there’s rapid changes occurring in price numbers greater than ten percent and less than twenty.
Kleckley says corrections can be healthy for financial markets, because they make over-inflated stocks more affordable.
This allows investors to purchase them.
Kleckley also believes the coronavirus is the cause for the economic plunge.
“I think it’s the primary reason right now, but again it affects the supply chain. It affects your ability to travel,” said Kleckley.
“I know one of the things that’s being hit are airline stocks. I know companies have made decisions, if you don’t have to travel don’t travel.”
If people get sick from something like the coronavirus they can’t come into work, which can also lower productivity economically.
Kleckley’s advice is to keep your hands washed, and to try doing everything in your power to avoid getting sick.
The best thing that can be done for the economy is to stay healthy.