Coronavirus and how much it will cost the Global Economy ?

Covid-19 Cases Outbreak started back in from November in Wuhan China. But world came to know about it in January end and February start. This is the major pandemic after the great death i.e. the Plague back in 13th-14th century. This has huge impact on the lives all over the world as many cases are still coming and the deaths of hundreds of people have been reported and no one knows where it is going to stop. But let's hope for the best and get back on the topic.

Impact on World Economy :

Covid-19 has struck the core global value chain regions and hit the supply chains very badly. This pandemic has severe implications for the global economies. This Virus started from China and now hurting the whole world as the transport and import, export all stopped this affect the production and the consumption on a different scale. Now Empty streets around the world have become the new normal, thousands laid off for load, stores shut down, public gatherings banned, travel restriction and social distancing have been imposed as 3rd of the world  practices some form of lock down to slow down the spread the virus. And all of this having a impact on the global economy, as the globalization is done countries depend on each other for their import of some essential things. Industries like airline, import export companies, tourism, retailers, restaurants ans many other non essential services have been hit some harder than others. The United Nations said we may see a $2 trillion dollar short fall in global income and $220 billion dollar  hit to developing countries excluding chine because of Covid-19. Many services have been able to go digital in effort to continue their business such as online learning, yoga classes, food and grocery delivery services and telecommunication apps.  And many companies have been able to adapt to working from home a new pattern that seems to be forming as a part of  new reality. But there are many industries that can't switch to digital platform and continue functioning such as hair saloons, spas, movie theaters and the tourism industry. But a particular industry that experiencing both positive and negative impacts from covid-19  is the oil industry. While steep to declining gas prices isn't good for countries which rely on oil exports. It's good thing for consumers and benefit to the global economy but those countries get hard hit on their economy. It's only been a few weeks since a part of the world have essentially come to a halt. So figuring out how long will this economic decline last is a challenge. Health experts have said it could be months before we start seeing signs of change, and social distancing could continue for a quiet sometime depending on how much the virus continues to spread. So in the mean time there will continue to be a great deal pressure placed on the governments. And the virus remains for long time then it will lead the world economy to the recession.This pandemic can also change the world's method to cooperate with each other. Countries will face huge loss to their economies if economies are not open soon which can result in high unemployment around the world which can be similar to that of the great depression happened in 1930. 

IMF Report on this Pandemic : 

IMF is International Monetary Fund working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world bank for it's resources. IMF also in their world economy outlook report said that this pandemic is having a sever effect on the world economy. It is expected to cause a -3% change in global output in 2020, which is much worse than the 2008-09 financial crises. And about the growth projection the emerging Asia is projected to be the only region that grows in 2020, at a rate of 1.0% still more than 5% points below the previous decade's average.

And in the advances economies change of -6.1% in 2020 followed by 4.5% in the 2021. The U.S. is projected to contract by 5.9% in 2020 and grow by 4.7% in 2021. The Euro area, will contract by 7.5% in 2020 and grow by 4.7% in 2021. 

Impact on the global GDP over 2020 and 2021 from the pandemic crises could be around 9 trillion dollars. Assuming that pandemic fades in the second half of this year, with containment efforts gradually easing up, the world economy is projected to grow at 5.8% in 2020 as economic activity normalizes, aided by policy. If the pandemic does not recede in the second half of 2020,global GDP would fail an additional 3% in 2020.

This is the report says on global economy impacted by COVID-19. This will put the governments of different countries under great pressure that how will they manage the economy and the essentials need of the people especially in the developing nations. As in some poor countries social distancing is a big problem as they have no more space to live so social distancing is not possible in such cases. This is also a difficult task for the government to handle such conditions. Social distancing is very important according to the health expert and we have to follow it as making in the medicine will take a long time and a difficult job as well. As the transport and import, export also stopped due to this pandemic which will hit the countries that depend on other countries for essential things. So let's hope that this pandemic stop as soon as possible and start of new economy with high enthusiasm begin again. 

What we know at this point based on experts that social distancing as well as washing of your hands can stop the spread of this virus.So yeah also let's help our health experts in stopping this virus by following their guidelines and they can find the vaccine for this pandemic as soon as possible. So i hope that you have learn something new in this topic and if you like it then share.

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