Impact of COVID-19 (Coronavirus) on Global economy

Theme:-

• COVID-19 (Coronavirus Disease 2019) was first identified in Wuhan city of China in December 2019. Till now (27th February 2020) approximately 2750 people were died due to this virus and nearly 80,000 people were affected by it.
• This virus has spread to nearly 50 other countries.
• 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:-

• 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 are closed now, production has halted for the dependent companies in other countries. Some companies are looking for alternatives, which will be the costlier option.
• Due to the consumption slowdown in China, exports to the country have declined. So, this affects the economies of the countries that export goods to China.
• Movement of people is restricted due to the fears over the 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 in China, 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.
• Meat market got hit badly due to fears over COVID-19. Rumours have spread saying that coronavirus spreads through the meat. Some meat companies and organization are trying hard to debunk the rumours.
• Air travel demand is declined, and hence the aviation industry is negatively affected.
• Outbreak preparedness and response are costing a lot of money for the countries. This unexpected expenditure on virus prevention and control is affecting many countries such as Japan negatively.
• China is the second-largest economy in the world constituting to 16.3% of the world GDP. China is just recovering from the US-China trade war. And now as many people of working age are sick, they are not working and earning. Due to the nature of the coronavirus, factories and companies are closed in China to prevent further spread. This is causing immense economic losses to China and the dependent economies, which is a severe threat to the global economy.

Impact of COVID-19 on Indian economy:-

• 14% of India’s imports are from China. Indian industries depend on China for electronics, automobile components, pharmaceutical ingredients etc. So, India is one of the most affected countries due to the coronavirus outbreak in China.
• Automobile industry in India is already in a crisis due to the economic slowdown. And now the production is suffering due to the disruption of supply chains.
• The only positive thing for India is decreased crude oil prices.
• Meat market in India has also negatively affected.
• Preventing and preparing to tackle the possible spread of coronavirus within the country is a burden on the Indian economy, especially at the time of economic slowdown.

Conclusion:-

As of now the economic damage COVID-19 caused is manageable, but with time the damage will increase. Hope the vaccine is developed soon to prevent further loss of lives and also the collapse of economies.

Image by Robert Pastryk from Pixabay

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According to me Corona virus affected on global economy. It is mostly infectious decease and not only China is effected , some of other country also affected. China is severely affected ,many people passed away , lots of people in hospital ,they have been struggling for their life. China is the largely populated country and in international business they strongly participate. As a result import and export was going on , for Corona virus movement has been restricted and communication has been cancelled like transportation. Those people are coming from out side India ,in airport they are quarantine for inspection. Tourism industry largely affected in abroad, people don’t have courage to go for visiting. From China – India import automobile components and pharmaceutical ingredients etc and many other products so if material will not come production will be stopped. We know sensex down badly. In India Economy is already slow down.If this will continue then situation will be worsem .Still there is no treatment.

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In my opinion the Corona virus are highly affect our global economy.The impact of Corona virus which is breakout in China in Wuhan city in December 2019.Till now approximately more than 2750 people were died due to this virus nearly 80000 people were affected by it.There are many products which was import from China .Indian industry depends on China for electronis item like mobile phones and also the pharmacistical ingredient are also come from china .but because of this virus products are not import to India also.transportation of product are stopped. so they affect our global economy only positive thing for India is decreased crude oil price because of Corona virus.