A small viral outbreak that started to spread from china has dreadfully affected the global economy. After the 9/11 incident and financial crisis of 2008, this pandemic virus has brought the third and the greatest shock of 21st century. The virus has caused a 20% of GDP decline in the first two months of 2020. As the governments impose the strict lock-downs and consumers stay at home. Tourism and travel related industries are among the worst hit at sector level. Most of the countries are dependent on the tourism and the travel industries. According to THE Travel and Tourism Competitiveness 2017 report, United States, china, Germany, japan, United Kingdom, France, Mexico, Italy, Spain, and Brazil are largest travel industries and due to closing down of global tourism the global economy is at the worst hit. Pakistan is not exception in this regard. Since Pakistan is one of the major exporters of textile products which is key of foreigner currency earner now has reduced to the lowest possible level.  Largest number of Population of Pakistan already living below the belt level. According to the calculations of the Pakistan Institute of Development Economics [PIDE], between 20 million and 70 million people in the country might fall below the poverty line.

IMPACT OF CORONAVIRUS COVID-19 ON GLOBAL ECONOMY
Iffat Yasmeen
Iffat Yasmeen

Impact Of Coronavirus Covid-19 On Global Economy

Keywords: Coronavirus, Covid-19, Impact of Coronavirus, Global Economy, Travel and Tourism Industry, United States Economy, China Economy, Italy Economy, Spain Economy, Pakistan Economy

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A small viral outbreak that started to spread from china has dreadfully affected the global economy. After the 9/11 incident and financial crisis of 2008, this pandemic virus has brought the third and the greatest shock of 21st century. The virus has caused a 20% of GDP decline in the first two months of 2020. As the governments impose the strict lockdowns and consumers stay at home. Tourism and travel related industries are among the worst hit at sector level. Most of the countries are dependent on the tourism and the travel industries. According to THE Travel and Tourism Competitiveness 2017 report, United States, china, Germany, japan, United Kingdom, France, Mexico, Italy, Spain, and Brazil are largest travel industries and due to closing down of global tourism the global economy is at the worst hit. Pakistan is not exception in this regard. Since Pakistan is one of the major exporters of textile products which is key of foreigner currency earner now has reduced to the lowest possible level.  Largest number of Population of Pakistan already living below the belt level. According to the calculations of the Pakistan Institute of Development Economics [PIDE], between 20 million and 70 million people in the country might fall below the poverty line.

Tourism and travel related industries are among the worst hit at sector level. Most of the countries are dependent on the tourism and the travel industries. According to THE Travel ,

US, China, UK, Japan, Italy, Germany, and France are the world’s topmost economies yet facing worst outlook of economy and are at the verge of collapse. Stock markets have been pounded by 50% or more and the oil prices have been decreased. Many people have become jobless. Around 6.6 million people started to search for jobs. According to experts on the financial matters, situation will become worse and dreadful. Multiple business made financial markets seems to end. Organization for economic cooperation and development (OECD) has stated that global growth could be cut in half to 1.5% in 2020, if the virus continues to spread. Outbreak of covid-19 has compelled most of the investors to remove its money from multiple business, around $83 billion has already removed from emerging   market. Most major economies will lose at least 2.4 percent of the value their gross domestic product (GDP) over 2020.

According to experts on the financial matters, situation will become worse and dreadful

On the social front, coronavirus has significantly impacted on daily wage earners, small and medium business and traders and has given rise to unemployment. According to International Labor Organization (ILO), more than four out of five people (81 percent) in the global workforce of 3.3 billion are affected by the closure of workplaces. If talked about trade, traders are also in a great loss, The World Trade Organization (WTO) stated that the volume of world trade could shrink by up to 32%. While International labor organization (ILO) has stated over 195 million jobs globally could be lost. Sudden closure of industries, trade, transport and airports has made world economy jammed. Besides, the most affected sectors have become vulnerable such as tourism and travel related industries. According to UNWTO estimate, international tourist arrivals could be decline by 20% to 30% in 2020. If talked about sports covid-19 has also abysmal impacts on every aspect of sport.

If talked about trade, traders are also in a great loss, The World Trade Organization (WTO)

Analysis says, sudden vanishing and disappearance of sports will erase at least $12 billion from the revenue. Each and every sector has been badly effected by Covid-19. However, Pakistan is no exception in this critical and worst situation. Pakistan’s Pre-corona economy had already a worst outlook and was like jammed wheel, lockdowns have further exacerbated the situation and gave big hit to the economy of Pakistan. World bank in its latest south Asian economic report has projected that Pakistan’s economy will experience negative GDP growth of 1.3% in 2020-21 and due to this worst pandemic, situation can be even more worst in terms of managing a loss of income in the short-term. It is also observed that recovery of the global economy is not possible because it has severely impacted on global economy and is difficult to bring it back in a stable condition.

Analysis says, sudden vanishing and disappearance of sports will erase at least $12 billion from the revenue. Each and every sector has been badly effected by Covid-19. However, Pakistan is no exception in this critical and worst situation. Pakistan’s Pre-corona economy had already a worst outlook and was like jammed wheel, lockdowns have further exacerbated the situation and gave big hit to the economy of Pakistan. World bank in its latest south Asian economic report has projected that Pakistan’s economy will experience negative GDP growth of 1.3% in 2020-21 and due to this worst pandemic, situation can be even more worst in terms of managing a loss of income in the short-term. It is also observed that recovery of the global economy is not possible because it has severely impacted on global economy and is difficult to bring it back in a stable condition.
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