As the whole world is considering how to get back on track, the number of cases just keeps on piling. And, the adverse effects of Coronavirus is monumental. So far, it has claimed the lives of 330,013 people. Over billion students are not able to continue their education as the schools and universities remain shut.
Not to forget the global economic impacts of COVID-19. The Coronavirus has brought the business process to a complete halt. Countries are looking at losses worth millions of dollars. The GDP has taken a hit, and an imminent recession is expected worldwide.
Impact on the World Economy
As the doctors are putting their best efforts to treat the COVID-19 infected patients, the future of the economy looks bleak. As per the International Monetary Fund (IMF), the GDP has contracted to 3% from 3.3% growth rate.
The credit markets have seized up, and the markets are down by 35%. Some experts have even gone on to state that the situation is worse than the Great Depression of the 1930s. You will be shocked to hear that almost 30 million people have filed for unemployment benefits in the USA.
Fall in World Trade
A 13% to 32% fall in the world trade is expected in 2020 even when the lockdown is lifted. This is because it involves the unprecedented nature of global economic impacts of COVID-19 and health crisis. Moreover, expected recovery depends to a large extent on the effectiveness of the policies.
Disruption in the supply chain was already an issue before COVID-19 pandemic. The world merchandise trade had already observed -0.1% decline in volume in late 2019. Hence, the G20 and the WTO have offered two forums for global policy coordination on the crucial matters. Moreover, previous experience has also taught us that it is wise to keep the market open in tough times.
Global Shares Plummet
Investors around the globe are expecting the worst. They fear that government initiatives won’t be able to prevent catastrophic consequences. The individual savings accounts and pension values will suffer a loss, as per the research.
In fact, FTSE and the DOW observed their most significant quarterly drops (-24.5% and -18.5% respectively) during the three months. But, various countries have started taking actions. The UK and other nations have cut interest rates, and global markets have recovered to a minor extent.
Unemployment and Industry Scenario
As per the reports, 2020 is going to witness 32.1% unemployment. Plans are going on to enhance forward guidance, ease credits and introduce negative interest rates even. In addition to this, large stimulus packages have been introduced by the governments to support the workers.
Among the worst-hit industries, travel and tourism industries are at the forefront. This is followed by the restaurant, sports, hotel, aviation, shipping, oil and gas, retail and technology industries. US oil prices have turned negative (-$37.63), and Brent crude price has dipped below $20.
Chinese Industries Shut
China supplies roughly half of the industrial metals worldwide. In addition to this, it also exports major goods around the globe (due to the cheap laborers). These include computers, various hardware, chemical products, textiles and others.
As a result of the pandemic, industrial production, sales and investment fell in the first three months of 2020. Global restrictions have also hampered the supply chains of large companies such as Nissan, JCB, Tesla, etc.
Online Platforms Boom
As many people are working from home, online usage has been on the rise. Employees and students are using Zoom for daily activities and eLearning, respectively. Online streaming services like Netflix and Spotify have witnessed a surge.
Apart from online entertainment platforms, e-commerce websites have recorded enhanced engagements. People are relying on software solutions for the completion of tasks and revenue generation. These include Enterprise Resource Planning, Project Management and Customer Relationship Management tools and software.
Best Case Scenario
The UN DESA’s World Economic Forecasting Model has carefully studied the changing economic conditions. And, it has put forward the best-case scenario. It has predicted that global growth would fall to 1.2% in 2020.
They have taken into consideration moderate declines in private consumption, investments and exports. And, they have also taken into account the offsetting increases in government spending in China and other G-7 countries.
Reopening will be a Huge Challenge
The reopening of companies has already started across North America and Europe. But the businesses that involve large gathering, such as trade shows, conferences, sports, theme parks, theatres, will be at risk.
Even small and large establishments like Amazon, Facebook, Twitter have to be cautious. They need to put in place safe distancing guidelines and allow rotational shifts. Furthermore, it will be colossal undertaking to adopt policies so as to recover the loss incurred during the quarantine period.
As far as the health of the people is concerned, you will get further insights from the following discussion. If you need study help with COVID-19 assignments, you will get valuable pointers from this blog.
Number of Cases Continue to Rise
Even with the social distancing protocols at the place, the number of Coronavirus cases continues to soar. As of now, there are 4,864,881 cases worldwide. The USA has been the worst affected, and the disease has spread to almost 216 nations.
This is partially due to the fact that the people are defying quarantine guidelines in some countries. On the other hand, countries like Italy and other European nations have a high percentage of elderly people. Since their immunity power is weak; they are catching the disease at a faster rate.
Mental Health and Risk Factors
With people spending time at home, reports of depression and anxiety are cropping up. People who are out of jobs are experiencing severe episodes of mental breakdown. Even the students fear academic year loss and other sorts of uncertainties.
In addition to this, people who had prior health complications are more susceptible to COVID-19. This includes patients suffering from any respiratory disease, cancer, AIDS, etc. And, there is the risk of contracting the disease if you need health check-up at a clinic or hospital.
Lack of Protective Equipments
To make matters worse, healthcare workers and doctors are dealing with Personal Protective Equipment shortage. There is a dearth in protective suits, surgical masks, gowns and gloves. It is due to the severe disruption in the global supply chain.
With the number of cases rising each day, the doctors need a surplus amount of PPEs. Moreover, the COVID-19 outbreak has resulted in an unusual hike in the pricing of face shields, N95 respirators, and masks. Now, the WHO is working with governments and supply chain to boost the allocation of the PPEs.
Any Vaccines or Medicines Produced?
The unbridled spread of the SARS-CoV-2 virus has left the people wondering, “When would there be a cure for the pandemic?” Well, the specialists are working on it. The mRNA-1273 vaccine produced by the USA pharmaceutical company Moderna, has displayed promising results.
On the other hand, British-Swedish pharmaceutical company AstraZeneca could begin supplying potential vaccines in September. Already 400 million dose orders have been placed, and the USA is said to procure around 300 million doses. Meanwhile, hydroxychloroquine is being exported from India to other countries for the treatment of COVID-19 patients.
Necessary Safety Steps
With COVID-19 showing no signs of abating, people have to take care of themselves. They have to protect themselves as well as elderly people. Regular cleaning of hands with soaps or sanitizers is necessary. If you are outside, you must wear the mask all the time.
In public, you have to maintain good respiratory hygiene. Cover your mouth with a handkerchief while sneezing or cough in the crook of the elbow. Furthermore, you should keep an eye out for the news and further guidelines concerning the social distancing protocols.
With this, we come to the end of the present scenario of the COVID-19. As you can see, drastic measures are required to make a turnaround. But, nothing is impossible. All it needs is proper planning, execution and dedication.
Author Bio: Selina Johnson is a web developer, and she has expertise in statistics as well. Hence, she can perform data analysis using platforms like Hadoop. At MyAssignmenthelp.com, she supervises statistics homework help provided by the experts.
