- COVID-19 (Coronavirus Disease 2019) was first identified in Wuhan city of China in December 2019. Till now (10th July 2020) approximately 5,50,000 people were died due to this virus and nearly 1.2 crore people were affected by it.
- This virus has spread to the entire world.
- On 30th January, the World Health Organization (WHO) declared COVID19 as a Public Health Emergency of International concern.
- Coronaviruses (CoV) are a group of viruses that affects animals and humans. The first coronavirus that can affect humans is discovered in the 1960s. Before COVID-19, these family of viruses caused the SARS outbreak in China in 2002, the MERS outbreak in Saudi Arabia in 2012.
- COVID-19 is not just affecting the health of the people, but also economies of many countries. So the topic – ‘Impact of COVID-19 on Global economy‘ is widely discussed.
Impact of COVID-19 on the Global economy:-
- Many people lost jobs, and the informal sector is badly hit. This is a huge setback for economies.
- Due to the consumption slowdown in the world, exports and imports are affected. So, this affects the economies of almost all countries.
- Movement of people is restricted due to the fears over the further spread of COVID-19, and hence tourism industry is facing huge losses. Tourists spend money in the countries they visit, so the loss of this money is affecting the economies of many countries.
- Due to low demand for fuel, crude oil prices have dropped. Low crude oil prices are beneficial to oil-importing countries like India and detrimental to the economies of OPEC (Organization of petroleum exporting countries) countries like Saudi Arabia.
- According to the World Trade Organisation (WTO), China is the biggest exporter and second-biggest importer of merchandise as of 2019. Many industries in other countries are depending on China for many raw goods such as pharmaceutical ingredients, automobile components etc. So, coronavirus has hit global supply chains badly. As many factories in China were closed at the start of the pandemic, production has halted for the dependent companies in other countries. Some companies are going for alternatives, which is the costlier option.
- Pharmaceutical companies, hygiene products manufacturing companies are benefitting from this situation.
COVID-19 caused severe damage to the global economy. Nations are trying hard to rebuild their economies and to prevent further downfall. Hope the vaccine is developed soon to prevent further loss of lives and also the collapse of economies.
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