The outbreak of COVID-19 in Nov 2019 and its rapid spread in the rest of the world have halted the wheel of the global economy. The stakes, this time, are unprecedentedly high for the whole of the world. To understand the impact of Coronavirus on the global economy, we will discuss the major areas of the world economy:
COVID-19 Vs. Giant Economies:
• In the USA, recent reports reveal that the ratio of people applying for unemployment benefits is increasing at an alarming pace.
• Unemployment is rising in the US even with a speed faster than that of Global Financial Crises of 2008.
• Major sectors of the US GDP: consumption, investment, and manufacturing are contracting and are initiating a halt in global supply and chain.
• JP Morgon, the largest bank in the US has recently predicted that the economy of the country is expected to be contracted by 40% by the second quarter of 2020. • According to Times, since the outbreak COVID-19, and in China, the epicenter of the pandemic,
460000 firms have been closed leading the national economy contracted by 6.8%
• The COVID-19 is debilitating the cornerstone of the current Beijing Administration: Belt and Road transcontinental trade and infrastructure initiative. Ongoing crises have set the trillion-dollar project in shambles and compelled the Beijing administration, which was previously reluctant to renegotiate debt, to agree to debt concessions.
• SMEs are 60% of Chinese GDP and they are at high risk as pandemic has restricted the movements and labor and logistics. Both of these economies are considered the backbone of the world economy. Their recession is tantamount to the recession of the globe.
COVID-19 vs. Immigration:
The latest reports of the UN on immigrants show that about 48million immigrants are working in the US alone. The number in Russia, the Kingdom of Saudi Arabia, Germany, the UK, and UAE is 11.6million, 10.8million, 10.2million, 8.4million, and 8million, respectively. They provide their struggling economies with adequate remittances. But fortunately, it is finally done that the UK made Coronavirus Home testing available. The Covid-19 has set their future in balance and caused unemployment. This will definitely hurt the economies of developing nations across the globe.
UNO has warned the world against the increasing uncertainty of the global economy mainly in areas of manufacturing, trade, and industry. It further hinted at an approaching recession greater than that of the Great Depression of the 1930s.
COVID-19 Developing Economies: The negative impacts of the pandemic are likely to be felt severely in struggling economies. As the trade and manufacturing in developed economies are on halt, leading exports of developing economies of raw material nose-dived. Besides, it is failing the UN’s SDG (Sustainable Development Goals) of poverty and inequality reduction.
COVID-19 vs. Online Income Sources:
Widespread lockdown across countries like the UK has impacted negatively the online income sources for people from developing nations, practicing freelancing. Now, cheap essay writing services UK is frequently available as the native population is hunted in lockdown and is offering service remotely. This is fast replacing the online service provider from other countries like Pakistan, Bangladesh, and India.