Thursday, August 18, 2022
UncategorizedHow does the pandemic covid-19 can affect global economy?

How does the pandemic covid-19 can affect global economy?

Collaborative Post

As the pandemic covid-19 has put the entire world into lockdown, people are worried about the economic impacts of novel coronavirus. Everybody knows that major economy hubs of countries around the world are shut off. Some of the local and worldwide companies have been shut down completely to follow the government imposed lockdown. To get regular updates, you can use now. There is no doubt that this epidemic will affect the economy as a whole, whether it is the economy of one country or the whole world. Everyone is forced to live in their homes, from a worker working in an office to a daily wage laborer.

Now, seeing the growing & impacts of this pandemic, concerns about the economy are only increasing. Some economists have even claimed that this disease will destroy the entire global economy. Although some countries have been able to overcome this epidemic, nothing can be said about when and how it will end. For this reason, we must know how the impact of this epidemic will be on the economy of any country.

At this present time, there is nothing like a ray of hope that can save the entire earth from this deadly and too much dangerous epidemic. New cases are increasing day by day as equally as the deaths in different parts of the world. It can be said that this pandemic can become a regular part of our society if the scientists will not produce its vaccine very shortly.

No signs of abating are truly horrific for the entire civilization. As you know there is no permanent vaccine has produced to fight this disease, lockdown is the only way to slow down the spread of this disease. As per the reports of IMF, the global economy is projected to shrivel by over 3% in this year 2020, which could be the most sheered reduction-speed ever since the Great Depression of 1930s.

Photo by Austin Distel on Unsplash

Analyzing the impacts of covid-19 on economy

There is no doubt that this pandemic has shoved the worldwide economic into a downturn. As a result, the global economic has started dropping more and more. In addition, there is no way it can grow unless the lockdown gets ended quickly.

In the country like the United States, this pandemic has led millions of people for unemployment paybacks. In the past several months, the USA has become the worst affected nation from covid-19. Consequently, the unemployment rate is expected to rise more and more there.

As you have also seen many reports and news on the feeling for unemployment advantages in the USA, it looks very horrific for the economy of the United States. According to some expert reports and surveys, more than 36 million people have applied for the unemployment benefits, which is roughly a quarter of the working inhabitants.

Fall in external & domestic demands

The biggest problem the world economy has set to get from this pandemic is the fall in external demands. As the manufacturing hubs and organizations are unable to work constantly, it is not possible to see a growth in the external demands. Despite the decrease in the external demands, the domestic demands have also not that much.

This shows how dangerous this is destroying the manufacturing companies around the world. The manufacturing businesses and organizations contribute more in the improvement of the economy, and if they are not working, the economy will surely be affected.

Advanced economies are in danger

Furthermore, you need to fit in your brain that this pandemic has hit the advanced economies more. There are some country is expecting to see a major growth of 6%, but nothing happened like that. If you keep China out of this race of economy, then the economic growth rate could get worst and close to -2.1 %.

Natural gas & oil

Due to the biggest fall caused by coronavirus in the global industrial activities and travel activities, natural gas and oil industries are also facing problems. Well, perhaps you already know, the prices of oil dropped down at an unexpected amount. Many countries are seeing a decrease in the demands of oil and natural gas. As a result, this is not going to be a good thing for the global economy, especially while considering the contribution of oil and natural gas.

Reduced food & beverage demands

As per the reports of some experts, the demands of foods and beverages around the world have dropped down surprisingly. There are a lot of reasons due to which you are able to see such reduction in the demands of beverages and foods. As you are studying the same thing, you can consider the border delays, supply chain interruptions, food safety concerns, and several other factors. You might have seen the prices of wool, animal protein, and fibre declining.  Due to the reduced demands of the food and beverages, it is obvious to see a declination in the economy.

In addition to the things that you know about the impact of coronavirus on global economy, you must know about the support packages that advanced economies in the world are rolling out. Whether you talk about Japan, India, France and any other country, e they are rolling out more support packages.

While scrolling down, you may have understood the things regarding the impacts of coronavirus or covid-19 on the global economy. With a bit of luck, you will utilize the available information for better purposes.

Related Stories