Coronavirus: status, risks and implications

The latest update on Covid-2019, also know as Wuhan’s Coronavirus, informs that although deaths are still increasing, these are doing so at a slower rate than in previous weeks. However, we are faced with a cyclical risk in that we do not know when the pandemic will end. It also represents a financial risk because of China’s large presence in the productive, economic and financial sectors; ergo, what we see is a clear slowdown in the rate of growth, as well as in profits.

Covid-2019 has a high infection rate, but if we compare it with other pandemics that have emerged over the years, we see how it does not have such a high mortality rate. But we should not be optimistic, the situation may be complicated in regions with less capacity to respond to the pandemic. Hubei province is the most affected, with more than forty thousand cases, with a 72%.

Companies can invest in preventive measures to avoid the spread of Covid-2019 and prevent new threats. In the face of this threat, declared international by the World Health Organization resistance chains must be created in all production processes and strategies that companies have or will have.

These conclusions are contained in this BCG Henderson Institute report which can be accessed through this link