The Registered Trustees of National Students Union
The Office of the General Secretary
HOW COVID-19 AFFECT THE WORLD ECONOMY
The COVID-19 continues to spread rapidly around the world. Almost every country has reported cases, but the burden is asymmetrically distributed. The coronavirus outbreak is first and foremost a human tragedy, affecting hundreds of thousands of people. It is also having a growing impact on the global economy. This article is intended to provide business leaders with a perspective on the evolving situation and implications for their global economy.
The outbreak of coronavirus has disrupted the world economy and is spreading globally. The evolution of the disease and its economic impact is highly uncertain, which makes it difficult for policymakers to formulate an appropriate macroeconomic policy response. The 2019/20 coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. As the pandemic has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business in the services sector. The pandemic caused the largest global recession in history, with more than a third of the global population at the time being placed on lockdown.
Supply shortages are expected to affect a number of sectors due to panic buying, increased usage of goods to fight the pandemic, and disruption to factories and logistics in the world, in addition, it also led to price gouging. There have been widespread reports of supply shortages of pharmaceuticals, with many areas seeing panic buying and consequent shortages of food and other essential grocery items around the world. The technology industry, in particular, has been warning about delays to shipments of electronic goods.
Global stock markets fell due to a significant rise in the number of COVID-19 cases outside in Africa and the world as a whole. Recently, stock markets worldwide are their largest single-week declines since the 2008 financial crisis. Global stock markets crashed in March 2020, with falls of several percent in the world’s major indices. As the pandemic spreads, global conferences and events across technology, fashion, and sports are being cancelled or postponed. While the monetary impact on the travel and trade industry is yet to be estimated, it is likely to be in the billions and increasing.
The pandemic has affected educational systems worldwide, leading to the widespread closures of schools and universities. According to data released by UNESCO on 25 March, school and university closures due to COVID-19 were implemented nationwide in 165 countries. Including localized closures, this affects over 1.5 billion students worldwide, accounting for 87% of enrolled learner. Low income individuals are more likely to contract the coronavirus and to die from it. In both urban and rural areas low income neighbourhoods are disproportionately hit by coronavirus cases. Hypotheses for why this is the case include that poorer families are more likely to live in crowded housing and work in the low skill jobs, such as supermarkets and elder care, which are deemed essential during the crisis. In the Africa of low-income people may lack access to health care due to being uninsured or underinsured. Many low-income workers in service jobs have become unemployed. Economic turmoil associated with the coronavirus pandemic has wide-ranging and severe impacts upon financial markets, including stock, bond and commodity (including crude oil and gold) markets. Major events included the Russia-Saudi Arabia oil price war that resulted in a collapse of crude oil prices and a stock market crash in March 2020. The pandemic has impacted the film industry as well across the world and to varying degrees, cinemas have been closed, festivals have been cancelled or postponed, and film releases have been moved to future dates. Massive losses in the industry have been predicted. The pandemic has a significant impact on aviation industry due to the resulting travel restrictions as well as slump in demand among travellers. Significant reductions in passenger numbers has resulted in planes flying empty between airports and the cancellation of flights.
The world has changed within a blink of an eye everything is down due to pandemic. Humankind has been humbling with its wisdom, while trying to mobilize all resource to find the cure for the pandemic. Different opinions across the world are being compiled in an attempt to find solution. But the question is “Is this pandemic real?”. Well! The truth is YES! Corona Virus is real and is dangerous. We have seen how this has affect the whole world, no single national have been spared. The bad news is more people are dying even the doctors who sacrifices themselves in coming forefront to rescue patients, and worse still some countries the number of cases is increasing tremendously while other countries the number of cases is decreasing very slow. Again, in an attempt to control this pandemic precautions and measures has been introduced almost every country to combat the virus while doctors and scientist are trying to discover appropriate vaccine for the virus. However, with this having said, it is everyone’s responsibility to follow the precaution and measure so that we can reduce the spread of the virus. Initially, it was just news from a far but over sudden I heard our school is being closed because of the virus, thus, following the increased number of cases and death other countries were experience. This is how serious it is. See schools, offices, markets, churches and all gathering have been closed in most of the countries cross the world.
Due to his lockdown there is a huge disruption of operations which have affects the outcome of the world since work is no longer undertaken. Apparently, this have impacted economy around the world. There is a decline of economy because of this pandemic, as such we should expect the inflation when all this is over, because the world will need to recover economically. The good news is this pandemic is curable, even though affected people are healed with small rate but if we can follow those precaution and measures the will began healing very soon and when danger ended, and people will be found themselves. Of Couse, we will grieve for the dead but still will make new choices and dream of new versions. Furthermore, will create new ways of living and yes together we will complete heal the earth and life will be normal again.