OBELA Analysis

The effects of COVID-19 on the real economy are beginning to materialize around the world. Since the second half of March, the first symptoms of the deterioration of confidence and uncertainty in the economy appeared when the stock market indices of the main countries fell to a minimum during the year.
The situation that will inevitably be seen for most countries in the world will be: falling output, unemployment despite the efforts of economic authorities. This time with a generalized impact for all countries, sectors and with a direct risk for the human being.
The domino effect has already started and now the situation that occurred in February in China is present in the rest of the economies in March. The effect, scope and horizon of normalisation of all activity seem to be far away and are uncertain.

The change in the energy matrix led by China is not limited to the generation of electricity through clean energy. The market for electric cars, buses and motorcycles is booming.  Since 2016 China is the country with the highest domestic sales of electric cars and by 2019 it is the largest exporter of electric cars, motorcycles and buses in the world.
There is an incipient process of change of the automotive plant in Latin America essentially led by China and although small it is accelerating.
In Latin America, the electric car market is emerging. To reduce the carbon footprint, the governments of Latin American countries implemented measures to stimulate the consumption of electric cars

A large number of businesses have stopped because of the VOC-19 pandemic and the current economic outlook is negative for the global economy. As a result of China's closure of production and suspension of deliveries to global value chains and as intermediate inputs, many more countries have stopped much of their production.
International trade is suffering on both the export and import sides. Given the prospect of loss of real demand for inputs, the reaction on the stock market has not been one of over-pricing of commodities.
The trend in the prices of the main commodities has been downward since 201. Lower commodity prices have a direct impact on primary export economies, such as most Latin American economies.