Essay Topic: Coronavirus Impact on Global Economy
The most burning issue, covid-19, has not only taken a toll on people’s health but has also hampered the economy on a global level. It started in 2019 but its impacts are still huge and dramatic that is dragging the economy down, the world over. Veteran economists’ are anticipating the worst scenarios in the future. Although the lockdown restriction was put so that the situation can be curbed, the economic havoc was not forecasted. Here is a quick analysis of the covid -19 impact on the global economy.
The impact on different sectors that led to a significant drop in the global economy:
The Travel Industry
The travel and tourism industry is the biggest contributor to several countries’ economies. Many countries rely on this industry as the biggest source of income that is plowed back to the world-economy.
The effect of coronavirus on this industry has been severe as flights are not taking off due to the restrictions put by the government.
Also, new variants of the virus that are discovered lately have made various nations introduce stringent travel limitations.
Also Read: Essay on coronavirus
The hospitality industry has been hit really hard. It was reported that this industry employs millions of people every year, but due to the pandemic, a loss of jobs struck the world, and a huge segment of the young generation left unemployed. A fall in the reservations in top travel destinations was witnessed during the initial outbreak of the pandemic and still, the situation has not been recovered.
Shifts in stock markets can put an adverse impact on individual savings accounts. Around the world, Economies are devastated and stock markets have collapsed like never before. Companies like, Dow Jones Industrial Average, FTSE, and the Nikkei all observed immense decline. The US stock markets have recovered following the declaration of the first vaccine, however, the FTSE is still is not in safe territory. It has been forecasted that this recession will last longer and will damage the businesses universally.
Also Read: Essay on economic crisis due to covid 19
The Gold industry
Gold industries have secured a leading place in the growth and stabilization of the economy on the international level. The Coronavirus alarm refrained the purchasers and this adornments industry lost its sparkle. The subsequent reaction of Covid-19 included several implications for the gold-mining industry. The prices of gold rose by 28 percent starting from January 1 to August 14, 2020, fluctuating till now. In the meantime, energy rates and currencies in some gold-mining countries have dropped thus leading to a negative impact on the goal economy.
Positive impact on few sectors that resulted in relief in the global economy.
To fight the battle, all over the world, Governments have pledged huge sums of money for a Covid-19 vaccine and treatment options. This resulted in rising in the shares of some pharmaceutical companies that are associated with vaccine development. Companies such as Moderna, Novavax, and AstraZeneca have seen vital growth. Moreover, Canada individually has scheduled CAD 192 million ($136 million) to mass-produce vaccines. Eventually, this investment will lead to stability in the economy at a world level.
Also Read: Essay on vaccine of coronavirus (COVID-19)
No-contact modes are being adopted by many to stop the spread of the virus. This makes room for innovation and creativity in the products that promote no-contact practices. Companies like Amazon Go and Walmart have recently made voice-activated grocery shopping available that is being used by many people around the world. The other example is Robotic medicine that is on the rise. Many hospitals are experimenting to unravel robotic capabilities to increase no-contact services. These new innovations certainly are benefiting this industry and are expected to bring a revolution in the global economy.
Remote working appliances and software
As the Coronavirus disease started to spread, many tech companies’ revenue and stocks fell, however, Zoom’s shares surged. Other than Zoom, many remote working apps and software boom, and consequently their value increased. For example, Microsoft Teams reached a whopping 44 million users within just one week. Zoom alone witnessed 109% download growth. In the long run, this area could get more profit. Many enterprises are gravitating towards remote work like Zoom or Microsoft.
The global economy has a direct link with the ups and downs experienced by various different sectors. Few sectors saw a decline during the covid pandemic that led the economy saw a drowning phase while some got benefitted from it. Hence, enough loss has been caused to the economy due to falls in many sectors. The government must take some long-run decisions to fund the resilient sectors that need to be established the rigid economy in the future.