Impact of Corona Virus on the Global Economy
The COVID-19 (corona virus) is the buzz word created the disruption across the globe, this epidemic has impacted deeply on human physical and mental health. From December 2019 till now corona virus is turning to be a global disaster with an increasing number of corona virus patients from China, Japan, South Korea, Italy, U.A.E., India, and many other countries around the world.
As per the latest data by WHO, there are about 462684 have been affected by a corona virus and about 20834 deaths across the globe.
This situation resulted in human as well as economic losses. Industries like travel and hospitality have been impacted the most as the government is emphasizing on the industries where the human touch is more. Apart from this, technological giants such as Facebook, Google, and Apple canceled their upcoming events as WHO declared corona virus a pandemic. The International Air Transport Association predicts that the airline industry anticipated loosing around USD 113 Bn in revenue in 2020 owing to . Hence it is anticipated to slow down the global economy in the years to come.
As per the recent publication by WHO the number of corona virus cases registered is highest in the Asia Pacific region followed by Europe, MEA, and Americas. Recently OECD (Organization for Economic Co-operation and Development) annual global GDP growth is anticipated to decrease to 2.4% in 2020, which was around 2.9% in 2019.
Corona virus contamination has led to restrictions on travel and Labour mobility, especially in China. Unplanned delays in the opening of factories after the Lunar New Year holiday have impacted the major economic breakdown in the manufacturing as well as the service sector. Since the number of people affected by COVID-19 is about to cross 80,000 in China and the global number is quite bigger. Hubei was the epicenter of this outbreak, which holds around 4.5% output of China.
Restrictions on traveling and social gatherings resulted in the cancellation of many planned visits, holiday trips, business events, and flight tickets affected deeply on the service sector all over the world. Globally, Chinese tourists hold about one-tenth of all cross-border visitors and around one-fourth of all visitors Korea, Japan, and relatively smaller Asian economies. Widespread of COVID-19 has affected badly on the tourism sector and service industry not only in Asia-Pacific but also in other parts of the world. Countries all over the world are functioning together in order to fight the natural disaster like corona virus.
Recently, the government of Australia pumped around USD 11.4 Bn into the economy. The step taken by Australia’s government will impact positively to keep the running track of the country’s economy.
Corona virus is termed as a natural disaster and created economic breakdown worldwide. It taps each industry with different intensity but some of the economic losses will have a long term impression on the global economy. Government emphasis and actions taken to fight the global disaster will definitely recover the economic losses.
Author : Mangesh Nagapurkar
