Coronavirus Creates Renewed Global Economic Fear
As you know, Japan has already postponed the Olympics for one year. Now with the Olympics right around the corner, renewed concerns are present. To this day, Covid is still unleashing its full negative effect on the global economy.
Japan issued a State of Emergency for Tokyo, calling for a ban on all spectators from participating in the stands. There are two main issues going on here. First, rarely does a country host the Olympic games and not lose massive amounts of money. Now you add in the lack of revenue from spectators and sponsors to an extent, and you have substantial increasing budget deficits from the Olympics.
Japan, believe it or not, is in worse shape than the USA when it comes to debt.
The second major concern is the influx of athletes and personal into a country already seeing the renewed spread of covid. It is estimated that only a quarter of the population has received at least one vaccine. The concern is massive spread and the lack of hospital beds. What if it spreads throughout the athlete population? You have new issues that no country has had to deal with.
When does covid ever go away? That is a good question.