Rapidly spreading deadly coronavirus worldwide has a severe impact on the global economy. Due to this, the top 15 countries of the world including The US, UK, China, France, Italy, Iran, India, etc. have been hit by billions. According to the report, China will suffer the most damage due to Corona. China’s global exports could be reduced by $ 50 billion. The sectors most economic effects of Coronavirus include machinery, automotive and communications equipment.
Among the economies in the world that have been the most affected are the European Union ($ 15.6 billion), the United States ($ 5.8 billion), Japan ($ 5.2 billion), South Korea ($ 3.8 billion), Taiwan Province of China (2.6 billion Dollars) and Vietnam ($ 2.3 billion). The OECD has also estimated 50 basis points (2.9 percent to 2.4 percent in 2019) in global GDP due to Corona.
Latest data released by The Ministry of Statistics and Programme Implementation showed that Major economies in the world have faced GDP Contraction for the April to June quarter. India (-23.9), Spain(-22.1), United Kingdom(-21.7), France(-18.9), Italy(-17.7), Canada(-13), Japan(-9.9), Turkey(-9.9), United States(-9.1), Russia(-8.5).
The Asian Development Bank has said that Corona will have a major impact on the developing Asian economy. According to CII, China imports 43% of India’s top 20 goods. The mobile handset comprises $ 7.2 billion, computer and parts $ 3 billion and fertilizer imports of $ 1.5 billion. Due to Corona being severely affected by China’s economy, it will have a wide impact on India.
The consequences of the coronavirus impact on the global economy and send policymakers looking for ways to respond. China’s experience so far suggests that the right policies make the difference in combating the disease and reducing its effects – but some of these strategies come with strong financial trade.
Investors fear that the spread of coronavirus will ruin economic growth and is not enough to prevent a decline in government action.
In response to this, central banks in many countries, including the United Kingdom, have cut interest rates. The global market also improved somewhat after the US Senate approved a $ 2 trillion ($ 1.7tn) coronavirus aid bill to help workers and businesses.
Due to the lockdown in many countries, the travel industry is facing a crucial situation. Many countries have banned international flights to tackle with the coronavirus spread. Not only the international traveling industry but also the internal traveling solution providers are also facing a record-breaking downfall in business as district borders have been blocked by many governments.
To tackle coronavirus outbreaks’ effects on the nation many governments are making hard decisions that are going to affect the economy badly.
The major effects of coronavirus outbreak are on their way. Experts say that, after such massive lockdown, there will be a lot of demand for raw goods and production essentials from all the sectors. But as the manufacturing is shut there will be a huge shortage of these goods and major giants, their customers and also the economy will face a major fall down.
Above all this, it is clear that, if there is life then only the economy can be saved! So stay at home and help nation to overcome this crucial situation.