The outbreak of the Coronavirus (COVID-19) has significantly brought human suffering and economic disruption all across the globe. After witnessing a string of deaths, turmoil in the stock market and an immediate emergency cut-rate initiated by the Federal Reserve, there is something to be worried about.
Talking about the epicentre of the pandemic, which is China, the consequences are now being felt in every region worldwide. China is known to have an upper-hand in several commodity markets, supply chains and tourism and travel are affecting the health conditions and the world economy at large.
With this blog, researchers at My Assignment Services are doing its bit to make you aware of the deadly disease and the effects it is having on the world. Read it and join hands to battle it together!
How Is COVID-19 Affecting The World Economy?
Before we go ahead talking about the adverse effects of COVID-19 on the world economy, let us have a look at the infographic below. These are some facts about the Coronavirus and the world economy. This is not just the case in the US, the deadly Coronavirus has affected the economies of Australia, India, Africa, and many other countries as well.
Our economics assignment help experts are working day and night to present forth you the latest highlights concerning the COVID-19 outbreak impacts on the world. Now, we will be talking about six key points that will demonstrate how adverse the situation has become.
1. More than 110,000 people infected
There is a reason why COVID-19 is known to be the biggest threat to the global economy and the financial markets. Since it first came to surface in the city of Wuhan, China, the reports of the World Health Organisation (WHO) clearly states that this has spread to at least 110 countries in the world, infecting more than 110,000 people. As per the data, it is also clear that over 4,000 people have already lost their lives.
To fight this condition, the entire world is following the footsteps of the people in Wuhan by locking down the cities to restrict the spread of COVID-19.
Viewing it from the economic point of view, the self-quarantine conditions have rocked markets all over the world, resulting in plunging of the stock prices. This has ultimately impacted the world economy immensely.
The data below, as per the BBC depicts this in the form of a graph.
But, is there any alternative?
2. Downgrades in the forecasts concerning economic data
With the outbreak of the COVID-19, the world has also witnessed situations where a lot of banks have been cutting off their forecasts for the global economy. To name one, the OECD is one of them.
Following graph shows the downgrade report for the Organisation for Economic Co-operation and Development.
Source: OECD economic outlook report (March 2020)
As you can see in the image, the GDP of China has shown the maximum downgrade among all the other countries. And we know the reason right?
3. Stock market rout
Naturally, the fear of the COVID-19 has not only affected the world economy, but bit has also appealed to the inner sentiment of the investors. Due to this, there has also been a steady decline in the prices of stocks in the major markets.
4. Travel and Tourism
It’s not just the health and world economy that has been hampered by the Coronavirus. Even the tourism sector in every country has been severely affected by the COVID-19 outbreak.
As per the BBC research that was conducted on March 19, 2020, more than 100 countries have faced restrictions on travelling due to the Coronavirus.
These are the countries that have posed several restrictions during the present Coronavirus crisis. As per the estimate, by now more than 100.2 million flights have been cancelled worldwide, that is surely a big cost that the world economy is paying.
5. The restaurant chains have collapsed!
Two reasons are working parallel and have contributed to the shutting down of restaurant chains in the world. The fear of the virus in people as well as the self-quarantine advice that has been posted on them- both of these reasons have impacted the restaurants adversely.
The data are given below clearly demonstrates this:
Source: OpenTable and BBC
6. The prices of oil have stooped until the lowest
As per the research of BBC, it is found that the prices of oil that are present have not seen such a downgrade after June 2001. Just like oil, several other valuable commodities like gold, silver and diamond have also seen a great dip in their prices due to the COVID-19 outbreak.
After Opec, we already witnessed a cut down in the prices of oil. Further, the Coronavirus has driven it even lower.
The graph below shows the exact data.
In this blog, our economics assignment help experts have tried to touch upon each of the areas that have seen a massive breakdown due to the Coronavirus. Several other sectors in the world are preparing itself to face the consequences even further.
What we can do is do at least our bit and restrict ourselves from getting out of our homes to stay safe from the virus.
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