Unseen, scary, and breathtaking, Coronavirus is no less than a scary disease and at present, the world is haunted by it. The worst part is that we do not know much about it, still in the exploring phase. Corona Virus is trying to swallow the entire world in one shot. COVID-19 the scary virus has toppled the world’s economy. It destroyed many lives, led to increased unemployment, deaths, financial losses, lockdowns, and whatnot. Coronavirus news spread like a wildfire swallowing the entire globe. Below are some of the Global impact of Coronavirus on economies –
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Global impact of Coronavirus:
- Aftershocks of the global pandemic remain, but the short-term outlook appears positive, with vaccine distribution ramping up, global trade rebounding, and consumer confidence strengthening.
- Global recovery will be uneven throughout developed and emerging markets, as advanced economies roll out vaccines and maintain stimulus measures, while emerging markets face the most severe economic contractions, and are unlikely to recover within the next year.
- The IT sector has remained resilient throughout the pandemic, driven by demand for WFH solutions. This strength is likely to continue, as businesses prioritize digital transformations and cloud capabilities.
- Severe contraction in Q2’20 combined with continued economic uncertainty has decreased risk appetite from banks, further emphasizing the importance of non-bank financial partners such as Peridot to global corporates.
The global impact of Coronavirus is still unknown and unmeasured. In fact, in the coming years, it will mutate giving rise to various variants. Thus it will remain like the flu, to which everyone will get exposed once in a lifetime, and when your body produces antibodies to defeat this virus, you will no longer be affected by it. Let us take it with a pinch of salt that coronavirus is here to stay for long.
Potential issues in the future-
- Tech equity valuation bursts; normalization causing fallout across global markets given their size
- Enough people refuse to take vaccines, thus hampering back-to-normal drives
- The virus mutates and dodges vaccines
- Serious vaccine side effects start to emerge
- Democrats win two Senate run-off seats, and we see a huge change in fiscal agenda
- Alternatively, US policy paralysis with split government and ultra-polarized views
- EU Recovery Fund proves difficult to fully implement, exposing huge post-Covid economic divergences
- The climate emergency creates a tipping point in policy or behavior
Increased Unemployment rate due to Global impact of Coronavirus
The unemployment rate during Coronavirus has hit records high everywhere. Cost-cutting initiatives taken by all companies have resulted in huge job cuts. Removing those positions which are not pressing or without which the company can run. This resulted in decreased savings among people and lower consumption. Below are some sectors affected more than others:-
- Hospitality – which includes bars, restaurants, and hotels – has seen nearly 300,000 jobs go since February.
- Retail has shed 160,000 jobs as non-essential shops have been forced to shut, and culture has seen 89,000 jobs go.
- The most recent unemployment rate – for August to October 2020 – was 4.9%.
- Vaccine developers who have already reported promising phase III trial results against COVID-19 estimate that, they can make sufficient doses for more than one-third of the world’s population by the end of 2021. But many people in low-income countries might have to wait until 2023 or 2024 for vaccination.
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