According to BBC, In the United States of America, the number of people filing for unemployment set a record high, indicating an end to era of enlargement for one of the world’s biggest economy.  In the United States of America, the price of a barrel of West Texas Intermediate (WTI) turned negative for the first time in history.

EFFECT OF CORONAVIRUUS COVID-19 ON WORLD ECONOMY
Iqra Rehman
Iqra Rehman

Effect of Coronavirus Covid-19 On World Economy

Keywords: Effect of Coronavirus, Covid-19, Economy, Business, Effect of Coronavirus Covid-19 on different countries, Effect of Coronavirus Covid-19 On United States of America, United Kingdom UK, China, Japan, Nepal, Malaysia, Pakistan, India

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United States of America USA

According to BBC, In the United States of America, the number of people filing for unemployment set a record high, indicating an end to era of enlargement for one of the world’s biggest economy.  In the United States of America, the price of a barrel of West Texas Intermediate (WTI) turned negative for the first time in history.

United Kingdom UK

UK Purchasing Managers’ (PMIs) indices for both service production and manufacturing performance plummeted to record lows in April, demonstrating the unprecedented extent of the lockdown-related downturn. Non-food retail sales fell sharply in March, with food and drink sales more than outweighing them. Lower online retail and household goods sales didn’t account for the lack of physical sales. At a brighter note, having dropped significantly in March, PwC’s own new customer confidence survey showed some improvement in April. This may represent the support for household income from the work retention scheme and other policy initiatives announced for self-employed and small businesses in recent weeks. The International Monetary Fund (IMF) said it expected Britain’s economy to fall by 6.5% in 2020, close to other economies’ contractions, before rising by 4.0% in 2021.

The International Monetary Fund (IMF) said it expected Britain's economy to fall by 6.5% in 2020, close to other economies' contractions,

CHINA

The effect of COVID-19 coronavirus outbreak with prolonged business activity shutdown could be devastating to China’s economy. Recreation industry was expected to suffer most from the baseline of no virus outbreak, with a decrease of 5.8 percentage points. Many hard-hit sectors were the transportation, commerce and communication services. China offers a striking example: the Shanghai St.

JAPAN

According to TEIKOKU DATABANK (TDB), in certain cases, the coronavirus crisis compelled companies from cruise ships and Japanese inns to private tuition schools and tourism enterprises to go bankrupt with debts of up to 1,2 billion yen (about $11 million). More than 63 per cent of companies predicted that COVID-19 would have a “poor impact on their business results” in a TDB survey of more than 10,000 companies across Japan. Sadly, when we look to the future, we have to confront the implications of the one-year temporary suspension of the 2020 Tokyo Olympic and Paralympic Games-both activities were planned to “add a boost to the Japanese economy.” In a survey conducted by Nihon Keizai Shimbun on nearly 140 leading firms in Japan, about 50% of businesses say they have switched to teleworking partially or in principle.

In a survey conducted by Nihon Keizai Shimbun on nearly 140 leading firms in Japan, about 50% of businesses say they have switched to tele

MALYSIA

This pandemic would have devastating effects of both external factors (global supply and demand shocks) and domestic factors (MCO) on the Malaysian economy. Critically, this would have a disproportionate effect on smaller businesses and disadvantaged groups, such as immigrants and employees with lower incomes. The Malaysian economy is amongst the most highly exposed economies in the region to both Chinese demand. China is Malaysia’s number one trading partner, a significant source of foreign investment and its largest non-ASEAN tourism market. In addition, Malaysian companies have been one of the most profoundly integrated in global production networks over the past decade. It is compounded by the highly China-centric nature of global supply chains. More than a fifth of Mala actually does. Second, while necessary to prevent the outbreak of the new coronavirus in Malaysia, the MCO steps would also have devastating economic costs.

Prime Minister Tun Dr Mahathir Mohamad said on Monday (Feb 10) that Malaysia’s economy is expected to grow by 4.8 per cent this year, retaining the government’s outlook as it braces a possible global slowdown linked to the Covid-19 outbreak.

NEPAL

Nepal is beginning to experience the most sudden and widespread cessation of economic activity because of widespread concerns of a potential outbreak of this deadly respiratory pathogen capable of transmission to the population. Service industries such as tourism and hotels are especially badly hit. Tourism was expected to drive economic growth in Nepal and largely contribute to the high growth target of 8.5.That the government had set for this year, but it appears to have little financial support for this industry. According to a report prepared by the World Travel and Tourism Council, which represents the private tourism industry and has more than 200 members, the contribution of the tourism sector to Nepal’s economy stood at 7.9 per cent in 2018.

MALYSIA
This pandemic would have devastating effects of both external factors (global supply and demand shocks) and domestic factors (MCO) on the Malaysian economy. Critically, this would have a disproportionate effect on smaller businesses and disadvantaged groups, such as immigrants and employees with lower incomes. The Malaysian economy is amongst the most highly exposed economies in the region to both Chinese demand. China is Malaysia's number one trading partner, a significant source of foreign investment and its largest non-ASEAN tourism market. In addition, Malaysian companies have been one of the most profoundly integrated in global production networks over the past decade. It is compounded by the highly China-centric nature of global supply chains. More than a fifth of Mala actually does. Second, while necessary to prevent the outbreak of the new coronavirus in Malaysia, the MCO steps would also have devastating economic costs.
Prime Minister Tun Dr Mahathir Mohamad said on Monday (Feb 10) that Malaysia's economy is expected to grow by 4.8 per cent this year, retaining the government's outlook as it braces a possible global slowdown linked to the Covid-19 outbreak.
NEPAL
Nepal is beginning to experience the most sudden and widespread cessation of economic activity because of widespread concerns of a potential outbreak of this deadly respiratory pathogen capable of transmission to the population. Service industries such as tourism and hotels are especially badly hit. Tourism was expected to drive economic growth in Nepal and largely contribute to the high growth target of 8.5.That the government had set for this year, but it appears to have little financial support for this industry. According to a report prepared by the World Travel and Tourism Council, which represents the private tourism industry and has more than 200 members, the contribution of the tourism sector to Nepal's economy stood at 7.9 per cent in 2018.

PAKISTAN

On Friday, the Asian Development Bank (ADB) projected that Pakistan’s economic growth would slow down to 2.6 per cent in the current fiscal year due to ongoing stabilization initiatives, slower agricultural growth and the effects of the COVID-19 outbreak. Current account and fiscal deficits will further narrow, but inflation is expected to jump into double digits for a brief period. Expanding social security is essential to ensuring sustainable development. Pakistan’s economy is expected to suffer a loss of up to 4.64 per cent in gross domestic product (GDP) due to trade disruptions, both in imports and exports following the COVID-19 outbreak. The Planning Commission directed the Pakistan Institute of Development Economics (PIDE) to provide estimates of COVID-19 losses due to the growth front of GDP. Pakistan may not be ranked higher on the GVC, the country has sufficient integration with the global market to feel the foreign lockdown effect. Pakistan’s five major trading partners with over 50 percent share include China, the United States, the United Kingdom, Japan and Germany. Four of those are COVID-19’s worst-hit countries.

INDIA

Nearly 55 per cent of India-imported electronics originate in China. In view of the coronavirus outbreak and subsequent lockout, these imports have already fallen to 40 per cent. India is considering encouraging indigenous development as a counter-measure, in a bid to minimize reliance on a single market. The toll on the pharmaceutical industry is of major concern to India, especially as it accounts for 70 per cent. Such active pharmaceutical ingredients are important for a significant number of the country’s pharmaceutical manufacturing firms. As COVID-19 is rapidly moving across India, medication will be the number one customer demand, and as there are almost insufficient APIs to produce medicines, subsequent traders and the industry are witnessing rising prices. The coronavirus’ immediate economic and business effect was on the financial markets of India as well as the rupee, which hit a new low vis-à-vis the US dollar in March due to global risk-off sentiment. A relentless weakening of the rupee is likely to exacerbate their struggles to repay their obligations for companies laden with dollar-denominated debts.

INDIA
Nearly 55 per cent of India-imported electronics originate in China. In view of the coronavirus outbreak and subsequent lockout, these imports have already fallen to 40 per cent. India is considering encouraging indigenous development as a counter-measure, in a bid to minimize reliance on a single market. The toll on the pharmaceutical industry is of major concern to India, especially as it accounts for 70 per cent. Such active pharmaceutical ingredients are important for a significant number of the country's pharmaceutical manufacturing firms. As COVID-19 is rapidly moving across India, medication will be the number one customer demand, and as there are almost insufficient APIs to produce medicines, subsequent traders and the industry are witnessing rising prices. The coronavirus' immediate economic and business effect was on the financial markets of India as well as the rupee, which hit a new low vis-à-vis the US dollar in March due to global risk-off sentiment. A relentless weakening of the rupee is likely to exacerbate their struggles to repay their obligations for companies laden with dollar-denominated debts.
PAKISTAN
On Friday, the Asian Development Bank (ADB) projected that Pakistan's economic growth would slow down to 2.6 per cent in the current fiscal year due to ongoing stabilization initiatives, slower agricultural growth and the effects of the COVID-19 outbreak. Current account and fiscal deficits will further narrow, but inflation is expected to jump into double digits for a brief period. Expanding social security is essential to ensuring sustainable development. Pakistan's economy is expected to suffer a loss of up to 4.64 per cent in gross domestic product (GDP) due to trade disruptions, both in imports and exports following the COVID-19 outbreak. The Planning Commission directed the Pakistan Institute of Development Economics (PIDE) to provide estimates of COVID-19 losses due to the growth front of GDP. Pakistan may not be ranked higher on the GVC, the country has sufficient integration with the global market to feel the foreign lockdown effect. Pakistan's five major trading partners with over 50 percent share include China, the United States, the United Kingdom, Japan and Germany. Four of those are COVID-19's worst-hit countries.
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