Impact of novel coronavirus on global economy and its effects on Overseas Filipino Workers

Philippines ranks 9th place for having the most number of overseas workers (OFWs) and immigrants from across the globe. According to David K. Yoo, an American historian, OFWs are one of the largest diaspora populations, spanning over 100 countries. It comprises 11% (2.3 million) of the total Filipino population. Saudi Arabia holds as the foremost country for work destination of OFWs, recorded to be 24.3%. Other listed countries were United Arab Emirates with 15.7%, Hong Kong with 6.3%, Kuwait with 5.7%, Taiwan with 5.5%, and Qatar with 5.2%.

During December of 2019, the first outbreak of a new deadly virus started in Wuhan, China. The virus is later then known to be the Novel Coronavirus or NCov. Chinese government immediately pursued preventive measures to provide safety and health protection for its people the moment the epidemic began within their borders, but were still unable to quarantine some infected people. Hence, it started and still is spreading all over different continents. The current reports of the number of infected people are: 113 in Asia excluding its epicenter, China; 28 in Europe; 15 in the Americas; and 12 in Australia. Due to the crisis, travel bans were implemented, mostly direct flights from and to China.

The flight suspension or cancellation holds both valid advantages and disadvantages. One of the advantages is that it is one (the best) way to prevent the disease from spreading, causing a higher number of infected people. However, it also disrupts the global economy. It has taken a toll on airline companies with a declining number of consumers. This affects a lot of sections, most especially OPEC or The Organization of the Petroleum Exporting Countries. It is a group consisting of 14 of the world's major oil-exporting nations.

China is listed as the largest oil consumer of the world and due to the implementation of flight banning, oil-exporting nations lost their number one consumer, and this has affected the balance of their economy greatly. Saudi Arabia, the de facto leader of OPEC, said that they will be decreasing petroleum production due to the reducing demand of gasoline and oil most especially diesel and jet fuel from other countries.

By applying the Law of Supply and Demand, if OPEC threats or actually cuts off crude oil production and decreases stocks, the price of gasoline will drastically increase; and this will surely shock the groups that are a part of the global economy. The Philippines, for example, and other developing countries that are not yet self-sufficient and rely on imported oil, will be the most affected if prices jump high. If the NCov crisis will not be resolved and treated in a timely fashion, it will greatly affect OFWs and their families with upscale flight fares due to the escalated fuel price. In view of the fact that there is a wide scale of Filipino workers assigned all around the world, the risk will be higher and closer, considering that the Novel Coronavirus is also on a quick escalation in different parts of the globe where OFWs are also assigned.

Francella A. Macabata

Jackie Marie Y. Campomanes

Bachelor of Arts in International Studies

University of San Jose-Recoletos