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Copyright: Pixabay

Copyright: Pixabay

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COVID-19: Economic Impacts and Reactions


The spread of the coronavirus affects business worldwide. On 13 March the US imposed a 30-day travel ban on foreign nationals from Europe. All foreign travelers who are not US citizens and who have stayed in one of the following countries within 14 days before their planned entry into the US are denied entry into the US. Find out more about Corona restrictions for US visas and US entry.

AmCham Germany welcomes measures to combat the coronavirus, which will ensure that the virus does not spread further and protect risk groups in particular from the virus. “We must fight this pandemic together,” states Frank Sportolari, President of AmCham Germany. “Only a collective understanding of measures against the virus will help us to contain the pandemic and find solutions for our society and economy on both sides of the Atlantic.” Sportolari continues: “The current situation makes it clear that we should not focus on national isolation. In our globalized world, we need to develop joint aid initiatives for transatlantic trade.” A recent OECD report shows that the coronavirus could reduce global economic growth by half a percentage point to 2.4%.

 

Updates

The Center for Disease Control (CDC) is responding to an outbreak of respiratory disease caused by a novel (new) coronavirus first discovered in China and now detected in more than 100 locations internationally. Click here for the latest updates and resources CDC provides.

Within the European Union, the European Commission launched an advisory panel on COVID-19 composed of epidemiologists and virologists from different Member States to formulate EU guidelines on science-based and coordinated risk management measures. This panel, which was created following a mandate by EU member states, will be chaired by the Commission President, Ursula von der Leyen, and co-chaired by Stella Kyriakides, Commissioner for Health and Food Safety. Read the entire press release.

Furthermore the European Commission has decided to create a strategic rescEU stockpile of medical equipment such as ventilators and protective masks to help EU countries in the context of the COVID-19 pandemic. The stockpile will be hosted by one or several Member States. The hosting State will be responsible for procuring the equipment. The Commission will finance 90% of the stockpile. The Emergency Response Coordination Centre will manage the distribution of the equipment to ensure it goes where it is needed most. The initial EU budget of the stockpile is €50 million, of which €40 million is subject to the approval of the budgetary authorities. More here.

 

 

Economic Impacts of COVID-19

The corona crisis implies both a demand and a supply shock. Supply chain interruptions and production bottlenecks can weak global growth. The Chinese economy is currently the most heavily impacted.

  • As world leaders and healthcare professionals respond to the COVID-19 pandemic, businesses around the world have been forced to adapt to new restrictions, unpredictable supply chains and a limited workforce. For medical and pharmaceutical products, demand is high and the efficient movement of inputs is critical. For many other industries, dwindling consumer demand is already cutting deep. Find out more.

  • As companies deal with the immediate effects of COVID-19, they are also trying to better manage the risks associated with disruptions in the global supply chain. The Trump administration has made it clear that the US travel restrictions, and now some border restrictions, will not be extended to goods, leaving America open to reciprocal trade. However, companies that rely on freight shipments that are normally transported in passenger aircraft could be seriously affected if flights to Europe and other parts of the world are suspended in response to the travel restrictions imposed by these and other countries. Commercial trucks crossing the US-Canada border could also face increasing delays as the two countries have announced new restrictions on non-essential travel; similar restrictions on passenger travel to Mexico are expected in the coming days. More about the Coronavirus and Trade US Perspective here.

  • Read more about how coronavirus could impact global supply chain by mid march.

  • Find out more about the impacts the coronavirus has on AmCham Germany member companies in our survey.

  • Find out more about the coronavirus’ impacts on businesses of all sizes and sectors at the press conference held by the US Chamber of Commerce and at the coronavirus updateby Squire Patton Boggs.

 

 

Client advisory on operational and legal issues

 

 

Developments on spread of COVID-19 worldwide, Common Action Plan and the Solidarity Response Fund

  • AmCham Germany wants to be a valuable source of information for our members, as well as a forum for sharing best practices that are beneficial to everyone in our network. With this in mind, you can find information from the WHO here that is continuously being updated with developments on COVID-19. 

  • A new coronavirus disease Solidarity Response Fund will raise money from a wide range of donors to support the work of the World Health Organization and partners to help countries respond to the COVID-19 pandemic. The fund enables private individuals, corporations and institutions anywhere in the world to come together to directly contribute to global response efforts, and has been created by the United Nations Foundation and the Swiss Philanthropy Foundation, together with WHO.

  • The European Commission is coordinating a common European response to the outbreak of COVID-19. The EU wants to take resolute action to reinforce public health sectors and mitigate the socio-economic impact in the European Union. Therefore the EU  mobilizes all means to help EU member states coordinate their national responses and provides objective information about the spread of the virus and effective efforts to contain it.

 

 

Guidance for businesses, employers and employees on workplaces, home office and virtual meetings

  • The US Chamber of Commerce published guidances for businesses and employers on how to plan and respond to coronavirus disease and on workplace tips for employees.

  • Further guidance for businesses on the legal, regulatory and commercial implications of coronavirus COVID-19 by Squire Patton Boggs can be found here.

  • As companies strive to protect their employees from the spreading corona virus with travel restrictions and remote working arrangements, there is the risk that face-to-face meetings with teams, customers or suppliers may be cancelled for days – or possibly even weeks. Find out what it takes to run a fruitful and great virtual meeting.

  • Learn about how homeworking works best and what is important for everyone involved. We provide you with tools that make video conferencing possible and explain how work steps can be documented in a way that everyone can understand. We give workflow tips and reveal the most important rules of conduct.

  • The epidemic is a wake-up call for companies that should carefully review their policies, guidelines and procedures to protect employees, customers and operations during this and future epidemics. Find out more about strategic thinking and managing in times when the future is unclear by Harvard Business Publishing here. Furthermore Harvard Business Publishing suggests eight questions  companies should ask as they prepare and respond to the spread of the virus.

  • In response to the uncertainties presented by COVID-19, many companies and universities have asked their employees to work remotely.  The new policies leave many employees and their managers working out of the office and separated from each other for the first time. Therefore you can find a guide to managing your newly remote workers here.

 

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