/Coronavirus and its consequences for the world economy
Coronavirus impact economy

Coronavirus and its consequences for the world economy

In this 2020 we start the year with various environmental problems such as forest fires. It is also joined by other problems such as the appearance of Covid -19, better known as Coronavirus in China. This terrible disease gradually spread to all continents.

For this reason, the highest authority in health was declared a pandemic by the World Health Organization. In this sense, many countries have taken drastic measures to protect the population.

In European countries such as Italy and Spain they are the ones that lead the highest figures. All this Coronavirus public health problem and its consequences for the world economy are of considerable magnitude.

Therefore the economies of all countries are affected. The Coronavirus and its consequences for the world economy are devastating since this implies the closure of companies. Likewise, the production chain is broken and millions of people are going to be unemployed.

Early 2020 with Coronavirus

At the end of 2019 in Wuhan China, an outbreak of Covid -19 or Coronavirus emerged. However, it was not until later that this began to circulate in international news. Well the number of infected and deceased was increasing.

Therefore they took the measures and at the moment these figures have dropped. However in Italy the figure is alarming being this the central focus of the coronavirus pandemic in Europe. Next to Italy is Spain, which is experiencing a similar situation. Although the government extreme the obligatory quarantine measures in order to stop the chain of transmission of said disease.

This 2020 puts us in a scenario of uncertainty for millions of people. The Coronavirus and its consequences for the world economy make us reflect …

Covid-19 is a virus that has now spread to approximately 87 countries. Therefore we can see that the Coronavirus and its consequences for the world economy affected almost all countries.

In Latin America, it does not escape this harsh reality, since it is already starting to wreak havoc in some countries. Well, the contagion rate is very high. In this sense, the majority of leaders in the region have already taken compulsory quarantine measures for the general population.

However, there are still some heads of state that have not yet issued a quarantine measure, as is the case in Mexico and Brazil.

In Venezuela, the population has been quarantined in order to cut the transmission chain of Covid -19 or coronavirus.

The Coronavirus and its consequences for the world economy are also felt in Latin America.

Coronavirus and global economy
Coronavirus and global economy

Role of the World Health Organization (WHO) to curb the coronavirus

the highest authority in health matters has an important role, such as the World Health Organization (WHO), called for prevention and voluntary isolation, that is, quarantine, in order to prevent the spread of the virus.

This important health agency has provided support and advice to the countries. In this sense, they have donated test kits such as Venezuela, where it has the direct support of the Pan American Health Organization (PAHO)

On their social networks they publish valuable information for the prevention of the coronavirus. Furthermore, the Director General of this prestigious institution, Dr. Tedros Adhanom Ghebreyesus, in his statements calls for prevention.

The Coronavirus pandemic and its consequences for the world economy

When we talk about Coronavirus and its consequences for the world economy. In this sense, we mean that commercial activity at the local, national and international levels has been affected. But this does not stop there, what is in the future is not encouraging.

In this current context, there is a total slowdown in the economy. Therefore millions of workers will be unemployed.

International Monetary Fund Director, Kristalina Georgieva, expressed the following:

 

“The growth of the world economy, estimated at 3.3% for this year, could be cut between 0.1% and 0.2% due to the coronavirus”

 

The tourism sector, which is one of the greatest potentials of the economy in some countries, is already suffering the serious consequences of the coronavirus pandemic.

Coronavirus and its consequences for the world economy: Bankrupt airlines, hotels without guests, reservations canceled. This is the scenario facing the economy in the world.

Due to the increase in people infected with Covid – 19, the tourism sector suffered a severe blow. Mobility restrictions both between countries and within countries severely hit transportation services, accommodation and tourist attractions. Consequently we are seeing canceled hotel reservations, unoccupied tourist sites. Likewise, flights without passengers and last but not least, bankrupt airlines.

This situation, in turn, will translate into more unemployment, worsening access to food and medicine.

Italy economy and coronavirus
Italy economy and coronavirus

 

Coronavirus and its consequences for the world economy

There are many sectors that have been affected by the Covid pandemic – 19. Here are some of them:

  • The industry sector is paralyzed
  • Trade takes a break as there are countries where total quarantine is being carried out. Only the commercial sector associated with food, health and hygiene is maintained.
  • Exports and imports decrease dramatically since countries have closed all their borders.
  • Quarantine affects all trade from smallest to largest.
  • The tourism sector was paralyzed, in fact it is very affected.
  • Aviation is in crisis and some airlines are about to fail,
  • The stock market falls and has an impact on the world economy
Air transport and tourism industries affected by coronavirus
Air transport and tourism industries affected by coronavirus

Coronavirus and its consequences for the incalculable world economy

The rapid transmission of Covid – 19 or coronavirus, has led the authorities of the World Health Organization to declare this disease a pandemic.

The Coronavirus and its consequences for the world economy are causing panic in the financial markets. Therefore, capital flight is being seen, devaluation of the currencies against the dollar. As if that were not enough, the threat of global recession is latent.

In principle, the public health situation with the presence of the coronavirus in China did not seem to worry many. However, as cases were presented in other countries, alarms went off. The cases of Italy and Spain are the most worrying in Europe.

The current context is that the pandemic is present in approximately 180 countries.

For this reason, the countries of Europe that have been most affected, such as Italy and Spain, have quarantined the population.

This causes a drop in oil prices as well as in the stock markets. For this reason, economic experts speak of a global economic recession in the first half of 2020.

In an interview with BBC Mundo, Jeffrey Frankel, an expert from Harvard University, expressed the following:

“The possibility of an economic contraction appears to have increased dramatically.”

“We are very close to a global recession”

Coronavirus impact economy
Coronavirus impact economy

Strengthening the economy to placate the coronavirus

The Coronavirus and its consequences for the world economy do not look good. In such a way that it seeks to strengthen the economy to the maximum to alleviate what is coming …

Economic entities such as international organizations such as the Organization for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF) indicate the following:

“The pandemic can reduce world economic growth in 2020”

In this scenario, states are obliged to provide large sums of money so that the system continues to function.

There are countries such as France and El Salvador where their leaders have taken economic measures to favor the population in the midst of this economic crisis unleashed by the Coronavirus pandemic.

It is important to consider the social and economic changes that should be implemented after this lesson. Sectors like health and medicine must be strengthened. Likewise, the state forecasts for crisis situations should be considered.

Countries’ greatest assets are their citizens. They produce and consume generating the central core of the economy. It is them, the citizens, who must be cared for so that we can overcome any catastrophe or pandemic in the future.

Sources:

https://gustavomirabalcastro.online/destacadas/coronavirus-y-sus-consecuencias-para-la-economia-mundial/

https://www.bbc.com/news/business-51706225

https://www.cnbc.com/2020/03/12/coronavirus-impact-on-global-economy-financial-markets-in-6-charts.html

 

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