COVID-19 Impact on World Economy

Going through various news over the world during the lockdown period many points towards upcoming disasters on the world economy along with human mortality due to the months-long shutdown of the world economy. The effects had already come into the surface like many people lose their jobs on which they used to heavily depend on making their livelihood. No country remains untouched with world pandemic of COVID-19. Only the intensity of stress matters.

In the interconnected world when the major influential economy of the world gets affected by COVID-19 then certainly others also get influenced by it after all. It is not a disaster to few countries alone thus recovery from its impacts certainly takes longer. This upcoming economical crisis is different from the economical crisis happening in history. This economic crisis is not caused by the economic failure of the banking system and financial policies of nations but due to biological-based problems. Leading towards economic crisis.
COVID-19 Impact on World Economy - representative graph
World Economy would be under negative growth

No one could force people to came out of their home and involved in economic activities to prevent upcoming greatest depreciation unless and until COVID-19 comes into control.
Prior, to COVID-19 impact the world economy had shown negative symptoms, this virus makes it inevitable/unavoidable and direct towards greatest depression on human history. The economy of developed nations would be affected in larger intensity leading under the greatest debt stress. The supply chain of raw materials and final products disturb thus in demand and supply in the market.
Many industries, factories are shut down due to the unavailability of raw materials, and many for the safety of workers, much service-based company. Small business is shutting down sue to lockdown and due to fear of the pandemic COVID-19.

It is predicted the loss due to COVID-19 and lockdown, a prevention measure to control it, can cause impacts more than the economical and human loss faced by the world during the second world war. Thus some expert refers to it as world War III not between the nations but with the virus whole world is fighting together.

Most of the powerful countries with super economies are not remain safe sides. China, a leading country towards world superpower in the world economy had to face greater economical loss as it also a first nation that hit by COVID-19 and shut every economical activity to prevent and take control over the virus and it did almost, however, it’s taken longer to get back to normal.

America, a superpower in world economy may not remain superpower again in future soon. America is one of the hardest-hit countries by COVID-19 to this date. The world economy depends on the American economy as most of the world transactions done in the US $ and fluctuation on Americal dollars are certain and hence the world economy. It is predicted almost double-digit negative growth in GDP of America and it is the first time in American history huge sum of fund allocated for compensations to the employee who losses job, small business, aviation services and more sectors that suffers an impact. That is predicted it would be greater than 1930-1942 great economic depredation.

Now, let's overlook underdeveloped and developing the national economy. Unemployment, poverty would definitely rose, highly reduced GDP and in remittance dependent economy many workers return home nations decline income, economical supports from development partner nations would highly be reduced as each nation is suffering on themselves, low internal productivity, declining purchasing power, also less supply than demand all leads towards worsening the economic situation. Some positive part is there there are opportunities to involve in increasing national productivity by applying various innovative economical activities. Because of the heavy reliance on other nations for its economic growth they couldn’t meet the economical growth as expected.

However, it is mentioned that the agriculture-based economy and the small economy would recover soon and impacts due to COVID-19 would remain short term compared with the huge economy. Larger economy means larger impacts and a small economy means smaller impacts.  However, delay in development work leads to significant loss which is not taken into consideration and only considering the active economy that’s much lower. Developing countries' economies would certainly come to normal sooner if the investment is done rationally but due to various reasons like bribery, mafia, commission, delay in developmental work, black market, all causes delay to reach normal and make nice economical growth again.

COVID-19 Impact on World Economy COVID-19 Impact on World Economy Reviewed by Amrit Devkota on April 28, 2020 Rating: 5

5 comments:

  1. Apart from economical point of view, I think everything else is going fine. In today's world, where everyone is in a pursuit of earning without giving any importance to the environment, this kind of lock-down should happen time and again.

    When economy tries to imbalance ecology, nature adjusts the balance itself.
    This is a time where the nature is healing itslef. You might have heard about Ozone hole healing. You can't deny that you have ever seen the sky so clean.

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    Replies
    1. Thank you! I appreciate your words. It's nice to have lock-down from ecological perspective. But, here I am discussing in human centric way and possibilities of difficulties in people's livelihood. Some of people with secured job and income can sustain life but there left huge population those who suffered most. In my opinion, for imbalancing ecology most of people with higher income are more responsible because of their unnecessary demands, than people with low income.
      I am not denying news about Ozone hole healing. If we want to our environment clean, the only problem our environment has is us and we have it leave out of its way. That again also not a good idea so, middle way should be taken. For this to go detail separate article required. I guess you understand what I mean, we have to take both aspect together. And at the end of the day with empty stomach people don't think of environment.

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