Covid-19 Impact on Economies
Impact of Covid-19 on Global Economy Structure
The outbreak of pandemic Covid-19 all over the world has disturbed the political, social, economic, religious, and financial structures of the whole world. The world’s topmost economies such as the US, China, UK, Germany, France, Italy, Japan, and many others are on the verge of collapse. Besides, Stock Markets around the world have been pounded and oil prices have fallen off a cliff. In just a week 3.3 million Americans applied for unemployment and a week later another 6.6 million people started searching for jobs. Also, many experts on economic and financial matters have warned about the worsening condition of global economic and financial structure. Such as Kristalina Georgieva, Managing Director of International Monitory Fund (IMF), explained that “a recession at least as bad as during the Global Financial Crisis or worse”. Moreover, Covid-19 is harming the global economy because the world has been experiencing the most difficult economic situation since World War-II. When it comes to the human cost of the Coronavirus pandemic it is immeasurable therefore all countries need to work together with cooperation and coordination to protect human beings as well as limit the economic damages. For instance, the lockdown has restricted various businesses such as traveling to contain the virus consequently this business is coming to an abrupt halt globally.
Loss of lives due to any pandemic causes definite irretrievable damage to society. But apart from this, COVID-19 has severely demobilized the global economy. In order to restrict the further transmission of the disease in the community, many of the affected countries have decided to undergo complete lockdown. Major international flights and also all types of business transports have been deferred amid different countries. Due to lockdown all domestic flights, railway service (except goods trains), bus, truck, and vehicle transports are suspended with special exemption to those associated with essential commodities. In almost all the COVID-19 stricken countries, entire educational, commercial, sports, and spiritual institutions are closed. Industries are suffering a lot as many of these excepting those related to essential amenities are closed for a long time in many countries. People belonging to the tourism and transportation industry are also facing the utmost difficulties. The production level has gone very low. The economy of many so-called powerful countries are now facing the threat of high inflation and increasing unemployment as a result of a lack of productivity and excessive expenditure for the treatment and rehabilitation of the COVID-19 victims and their families. Lockdown will directly affect the GDP of each country in major economics. For each month there will be an approximate loss of 2% points in annual GDP growth. The tourism sector alone faces an output decrease as high as 50% to 70%. According to the World Trade Organization (WTO) and the Organization for Economic Cooperation and Development (OECD) have indicated COVID-19 pandemic as the largest threat to the global economy since the financial emergency of 2008–2009. Some of the experts are even saying that human civilization has not faced such an unprecedented emergency after World War-II. So, COVID-19 has undoubtedly put forth a remarkably bad effect on the day to day life of the entire human society and also on the world economy.