The outbreak of the COVID-19 pandemic has been unprecedented, and its impact to world markets has been reflected in foreign exchange. The impact of COVID-19 touches every part of the economy, and can largely be divided into three categories:
The COVID-19 pandemic is presenting us all with a period of great uncertainty. One thing we have learned from past crises is that we will likely experience economic volatility, including wide exchange rate swings and abnormal patterns of inflation. While these are early days, we have already measured higher rates of inflation in China, as well as significant fluctuations in major currencies. In addition, living conditions have worsened for many across the globe. It is likely economic volatility and restricted lifestyles will be with us for some time.
My primary responsibility is to serve as the strategic point of contact for the AIRINC clients in my region. I work with them to look for ways to help them meet their goals and face their mobility program’s challenges. The COVID-19 outbreak has been a prime example of the latter in 2020. I have been working with clients to ensure they are informed about the conditions facing their assignees and the impacts to the data that they receive from AIRINC – mainly hardship and danger pay.
As of Feb 26, 2020, the number of confirmed cases of CoViD-19 has risen to 91 with 2 fatalities. The anxiety on the ground in Hong Kong is pervasive. In my neighborhood, for example, there was a recent Coronavirus fatality. For many residents in Hong Kong, present events are stirring memories from of our lives during SARS in 2003. I was young at the time and mostly recall the extended holidays and chatting with friends online, but the fear of older residents who lived through previous outbreaks is tangible.
AIRINC recently conducted a “pulse survey” to understand how global companies operating in China who maintain expatriate staff in the country are responding to the outbreak. Out of the 110 companies who participated in the survey, 99 companies or 90% are considering implementing specific actions for assignees in China in response to the spread of the COVID-19.
Novel Coronavirus (2019-nCoV) has continued to spread over the past week and the World Health Organization named the virus a Public Health Emergency of International Concern (PHEIC) on Thursday, January 30. As of Friday morning in China, there were 9,776 confirmed cases and 213 deaths. The WHO stressed in their Thursday press briefing that 99% of cases are in Mainland China. 60% of cases and 96% of deaths are in Hubei province, the epicenter of the outbreak where Wuhan is located. Isolated cases are still emerging internationally, with confirmed cases in Thailand, Hong Kong, Japan, Singapore, Australia, Taiwan, Malaysia, Macau, South Korea, United States, France, Germany, United Arab Emirates, Canada, Italy, Vietnam, Cambodia, Finland, India, Nepal, Philippines, and Sri Lanka.
Do you have assignees based in China? If yes, what are you planning to do with assignees disrupted by the Coronavirus? Many of our clients are seeing an increase in calls from concerned assignees asking to discuss their situation, including:
On December 31, 2019, health authorities in China informed the World Health Organization (WHO) of a unique strain of viral pneumonia-like illness emerging in Wuhan City, Hubei Province, China. Many of the infected first identified were vendors or visitors at a wet market that sold fish and wild animal meat, which was subsequently closed on January 1, 2020.
AIRINC is delighted to invite you to participate in a benchmark survey focused on executive relocation practices. The survey primarily focuses on US domestic moves but also touches on international one-way relocations and two-way assignments. Responses are anonymous and participants will receive a copy of the results. We hope you can join us!
Hong Kong has been subject to ongoing street protests since June 2019. The protests have led to varying degrees of disruptions in daily living for residents, a sharp reduction in tourists visiting the city, and most recently, an economic downturn considered to be the worst since 2008.